1. LPs contribute 90% of the equity and fund 90% of any subsequent investments. 2. GPs contribute...
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1. LPs contribute 90% of the equity and fund 90% of any subsequent investments. 2. GPs contribute 10% of the equity and fund 10% of any subsequent investments. 3. All partners earn an 11% preferred return. 4. Distributions are pari passu until all capital is returned. 5. After all capital is returned, the GP receives 50% of cash flow until TOTAL equity has received an 18% return. (This payment is considered part of the excess cash flow to the GP at reversion.) 6. The GP receives 30% of cash flow thereafter
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: