Hey, Ariel
There’s a common assumption in syndicated real estate deals that if the promote structure looks favorable to LPs—say, an 80/20 split—that the deal is better for LPs.
But here’s what most investors miss: the promote structure is only one piece of the puzzle.
We’ve reviewed and structured hundreds of deals over the years, and have learned that true alignment (or misalignment) reveals itself in the fine print.
Today, I want to walk you through the five most common ways sponsors structure deals that quietly misalign their incentives with limited partners, and more importantly, how to spot them before you invest.