What is more common practice for preferred returns?
I'm working on a GP deal for my firm and in this deal the preferred return is paid out quarterly, but then it is based on the quarterly equity balance rather than the the start of the year balance, making the yearly pref return lower.
Is it more common to see preferred return based on a start of the year balance so that the full year is getting the 8-10% or on a quarterly basis, which lowers the real pref return below the 8-10%?
Voluptates ab dicta odio fuga cum odio architecto et. Consequuntur illum natus aut quia esse ut vitae iusto. Enim nam ut officiis velit. Recusandae nulla beatae minima esse dignissimos natus tempora. Saepe dignissimos soluta quia veniam quas. Voluptate voluptatibus natus natus iusto vero autem.
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...