The Promote – How the Real Money Is Made In Real Estate Private Equity

The Promote – How the Real Money Is Made In Real Estate Private Equity

The key term to a real estate private equity deal is the sponsor “promote”. It’s industry jargon – don’t you love fancy terms! – for the sponsor’s disproportionate share of profits in a real estate deal, provided the project hits certain return benchmarks. The promote is often expressed in the form of a waterfall…

Underwriting the Google Way: Building Maps. Not Numbers

Underwriting the Google Way: Building Maps. Not Numbers

We are often asked how we pick the right deals amongst the hundreds that come across our desk. Doing a deep-dive analysis and underwriting on any more than a handful of deals a month is not realistic. A good part of this business is to not making stupid decisions as...