A Non-Promoted equity product gives sponsors the ability to invest a smaller amount of personal equity in a particular project where he or she is looking for a purely pari-passu investment partner.
Non-Promoted Equity
Investment Amount:
$2MM and up
Geography:
Primary and secondary markets
Hold period:
2-10 years
Property Types:
Multifamily, Mobile Home Community, Office, Industrial, Self-Storage, Retail, Hotel
Structure:
Pari-passu equity participations in the operating agreement of the borrowing entity
LTV/ LTC:
Not applicable.
Origination fee:
2% and up
Promote:
None
Rates of Return:
Not applicable, as equity participant will be entitled to their prorata share of profits/losses.