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Promote Structures of the Most Active Real Estate Funds

Promote Structures of the Most Active Real Estate Funds

By on Jun 3, 2013 in Personal Investing, Project Financing | 1 comment

Virkus Picture HalfArticle by, Brent Virkus - President and CEO of TRiTON Capital Advisory

When negotiating with a private equity fund to provide you financing, it's important to know what the funds internal hurdles are. This article highlights ten of the most active high yield real estate funds internal promote structure to help you with negotiating the best deal on your next real estate opportunity.

Blackstone

  • Net Return Goal: 16%+
  • Management Fees: 1.5%
  • Preferred Return for LP's: 8%
  • Subsequent LP/GP Splits - 80/20 to 20%, then 20/80

Blue Vista Capital

  • Net Return Goal: 18%
  • Management Fees: 1.5%
  • Preferred Return for LP's: 8%
  • Subsequent LP/GP Splits - 100/0 to 20%, then 20/80

Brookwood Financial

  • Net Return Goal: 15-18%
  • Management Fees: 1.5%
  • Preferred Return for LP's: 8%
  • Subsequent LP/GP Splits -  20/80

Fortress Investment

  • Net Return Goal: 17%
  • Management Fees: 1.5%
  • Preferred Return for LP's: 8%
  • Subsequent LP/GP Splits - 50/50 to 20%, then 20/80

JMI Realty

  • Net Return Goal: 18-20%
  • Management Fees: 2%
  • Preferred Return for LP's: 9%
  • Subsequent LP/GP Splits - 70/30 to 20%, then 20/80

Prudential Real Estate

  • Net Return Goal: 15-18%
  • Management Fees: 1.75%
  • Preferred Return for LP's: 10%
  • Subsequent LP/GP Splits - 80/20 to 20%, then 40/60

Sperry Equities

  • Net Return Goal: 16-18%
  • Management Fees: 1%
  • Preferred Return for LP's: 8%
  • Subsequent LP/GP Splits - 50/50 to 20%, then 20/80

TerraCap Management

  • Net Return Goal: 20%+
  • Management Fees: 2%
  • Preferred Return for LP's: 10%
  • Subsequent LP/GP Splits - 50/50 to 20% then 20/80

Woodburn Investment

  • Net Return Goal: 18%
  • Management Fees: 1.5%
  • Preferred Return for LP's: 9%
  • Subsequent LP/GP Splits - 50/50 to 20%, then 20/80

Hungerford Properties

  • Net Return Goal: 17%
  • Management Fees: 1.5%
  • Preferred Return for LP's: 10%
  • Subsequent LP/GP Splits - 50/50 to 20%, then 20/80

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