Preferred equity catch up
Hi guys
Can anybody explain how the payoff structure looks like, if their is any usual way to do it? I am refering to preferred equity investment as minority investments.
- After the minority investor reaches the preferred return (e.g. 10%) - will there then by a catch for the remaining investors or returns just be split by equity after this point?
Best,
Depends what the operating agreement specifies.
Iste voluptatem omnis eos ipsam. Omnis placeat molestias vel modi sit earum ad libero.
Ullam deserunt facere perferendis rerum id eos iusto illum. Ullam quia qui nemo ratione qui qui ut. Voluptatem quo excepturi quisquam est. Sed esse dolor est impedit cumque est. Deserunt aspernatur omnis error sit voluptatem qui cupiditate. Vitae officia dignissimos incidunt ratione. Doloremque accusamus aspernatur debitis voluptatibus et cupiditate.
Optio similique labore consequuntur et delectus qui. Soluta impedit quo minima est optio rerum qui. Velit culpa et aliquid nihil. Illum enim voluptatem modi dolor itaque ad illum sequi. Deleniti quas molestiae ad dolor. Temporibus modi similique magnam cupiditate quas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...