A developer just proposed to me a structure as follows:
- 7% pref
- 7-12% (overall return to equity) 50/50 split
- 12-17% 25% to LP, 75% to GP
- 17%+ 10% to LP, 90% to GP
As well, 5% development fee for GP, invested into the equity of the deal.
Does that seem unusually GP friendly?