JV Promote Structures and Concepts

I've noticed a lot of questions on this forum relating to promote structures, deal structures, and other topics relating to JV partnerships and return calculations. One of my former co-workers gave me an issue of the Real Estate Finance Journal that does a fantastic job diving into all these issues. I recently found a version available online and I figured I would share it here so others can use it as a resource. Fair warning, it is very dense so you will need to set aside some time to really grasp what is being described.

http://www.pircher.com/media/publication/50_SACAr…

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Comments (4)

Aug 5, 2016 - 10:24pm
RE Dude, what's your opinion? Comment below:

This is good article and I will share with coworkers.

Aug 8, 2016 - 8:46pm
OTB, what's your opinion? Comment below:

I'm really happy that you posted this. I came across it a few years ago and haven't been able to find it since.

Aug 8, 2016 - 9:10pm
Gentleman and Scholar, what's your opinion? Comment below:

This exact article is what I utilized for leverage with one of our LP investors on the effect of compounding (nominal rate vs. effective rate) and was able to achieve a (slightly) lower set of return hurdles for our venture.

Thanks for sharing, good info for anyone looking to understand waterfalls and the concepts behind it.

Aug 9, 2016 - 10:38am
Debtlift, what's your opinion? Comment below:

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