Joint venture equity partnerships providing development capital in exchange for profit share, ideal for developers seeking to scale without traditional debt. Our Potters Bar-based service connects you with specialist lenders who understand the Hertfordshire property market.
JV (Joint Venture) equity provides development funding through partnership structures where an equity investor contributes capital in exchange for a share of the development profits. This approach allows developers to take on larger or more projects than their own capital would permit.
Unlike debt funding, JV equity doesn't require monthly interest payments or personal guarantees in most cases. The equity partner shares in the project risk and reward, aligning interests between developer and investor. Returns are typically structured as a preferred return to the investor plus a profit split.
Our JV equity solutions connect developers with institutional investors, family offices, and private equity funds seeking property development exposure. We structure deals that work for both parties, whether for single projects or programmatic partnerships across multiple schemes.
Market Insight: Commuter town with excellent rail links. Gateway to Hertfordshire from M25. Local retail serving affluent catchment.
Town centre improvements; station area enhancement
Standard strong appetite for commuter town properties.
Typical structures include a preferred return to the equity investor (often 8-12% annually) plus a profit split above this hurdle. Common splits range from 50/50 to 70/30 depending on who contributes what to the project. The developer usually contributes their expertise, site sourcing, and project management in lieu of cash equity.
JV structures vary, but developers typically retain day-to-day project control and decision-making. Equity partners usually have approval rights over major decisions like budget changes, material variations, and exit strategy. The partnership agreement clearly defines responsibilities and decision-making authority.
Yes, many JV structures use senior debt alongside equity to optimize returns. The equity partner provides the developer's equity contribution, with senior debt covering 60-70% of costs. This combination allows developers to participate in projects with minimal cash investment.
Equity partners typically seek projects with minimum 20% profit on GDV, experienced developer teams, good locations, and clear planning positions. They'll conduct thorough due diligence on the developer's track record, the project feasibility study, and market conditions for the end product.
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