Development · Joint ventures
Joint venture and equity funding
When debt alone will not stretch far enough, an equity partner can fund some or all of the cash contribution in return for a share of the profit.
How development joint ventures work
In a development joint venture, a funding partner — often a private fund, a family office or an experienced investor — provides some or all of the equity a scheme needs. In return they take a share of the profit, a preferred return, or both. Senior debt is usually still arranged alongside.
Every joint venture is negotiated. The key points are how much the partner contributes, how profit is split, who controls major decisions, what happens if the scheme underperforms, and how and when each party is repaid. We help you understand the trade-offs and work alongside your solicitor on the heads of terms.
When a joint venture is the right fit
- Experienced developers with a strong pipeline but limited liquid capital
- Larger schemes where the equity requirement exceeds what you want to commit
- Restructuring a stalled scheme where new money is needed alongside new debt
- Developers who prefer to share profit rather than take on additional debt
Questions
Frequently asked questions
Will I lose control of my scheme?
What do equity partners look for?
Is a joint venture better than mezzanine?
Working up a scheme?
Share the appraisal as it stands — even in draft. We will look at the capital stack with you before anything goes to a lender.