GP Promote Value & the Effective GP Share
This lesson is part of the course
In this lesson
You value the GP's promote tier by tier and turn it into the two numbers sponsors and LPs quote: the GP's effective share of all cash and of the profit.
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Lessons in this course
- Deal Cash Flows & the Levered IRR Locked
- Return of Capital & the Compounding Preferred Return Locked
- Tier 1 to an 8 % IRR Hurdle: the Hurdle Balance Locked
- Tiers 2 & 3: the Promote at 12 % and 15 % IRR Hurdles Locked
- IRR Hurdles vs Equity Multiple Hurdles Locked
- GP Promote Value & the Effective GP Share Locked
- Promote Sensitivity to the Exit Cap Rate Locked
- American vs European Waterfall Timing (Simplified) Locked