πΌ Capital Stack 201: Structuring a JV with a Capital Partner
When scaling a project, a joint venture (JV) can provide both funding and strategic alignment β but success depends on structure.
Here are 5 key elements every investor and sponsor should define:
1οΈβ£ Roles: Clarify whoβs the Operating vs. Capital Partner
2οΈβ£ Capital Stack: Outline equity splits, co-investment, and leverage
3οΈβ£ Promote: Set performance-based waterfalls tied to IRR or equity multiple
4οΈβ£ Decision Rights: Define control over sales, refinances, and major actions
5οΈβ£ Exit Strategy: Align on timing and risk tolerance from day one
π‘ The goal isnβt just to raise capital β itβs to build alignment, trust, and clarity.
At Icon Capital Advisors, we help structure JV partnerships that balance control, capital, and long-term value. Contact us today and learn how we can help you optimize your investments!
#JointVenture #Finance #RealEstateInvesting #CommercialRealEstate