Leveraging a Co-GP Structure to Create a Positive Cashflow Real Estate Development Business Assume a project cost of $100 million, comprised of $40 million in equity and $60 million in debt. On a 90/10 split of the equity, the PE (Private Equity) Fund/Investors would provide $36 million of the $40 million needed in equity.
Can you explain a couple things? What would be the expected return for the LPs? What would the expected returns be for the 90% co-GP? How do you split the promote? Does the GP make their windfall just on fees, and any of the promote is just gravy?
Can you use actual cash values in your explanation?
Can you explain a couple things? What would be the expected return for the LPs? What would the expected returns be for the 90% co-GP? How do you split the promote? Does the GP make their windfall just on fees, and any of the promote is just gravy?
Can you use actual cash values in your explanation?