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Joint Venture Equity

Institutional JV equity, LP equity, and co-GP capital for CRE development and investment.

Joint venture equity is the most bespoke capital type in the commercial real estate stack. Every JV has its own waterfall, preferred return, promote structure, and governance terms — and the difference between the right equity partner and the wrong one can determine whether a deal executes cleanly or becomes a conflict. LTG sources JV equity from institutional equity funds, family offices, private equity real estate platforms, and co-GP capital providers who are actively deploying in the specific deal type and market.

Finding JV equity for a $40M NYC mixed-use development is fundamentally different from finding JV equity for a $200M sunbelt multifamily portfolio. The investor universe for each is different, return expectations are different, and promote structures are different. LTG maintains current dialogue with equity sources across both segments — and knows who is actually deploying today versus who is in a fundraising cycle and unavailable.

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LP Equity vs. Co-GP vs. Preferred Equity

LTG advises sponsors on the full spectrum of partnership equity structures. LP equity is the traditional JV structure: a passive LP provides the majority of equity capital in exchange for a preferred return and a share of the promote. Co-GP equity brings a larger platform into the GP alongside the sponsor — sharing promote in exchange for their balance sheet, relationships, or operational depth. Preferred equity sits below LP equity but above senior debt, providing proceeds in exchange for a fixed return without a traditional promote.

The right structure depends on the sponsor's desire for control, the deal's return profile, the capital source's requirements, and the timeline. LTG helps sponsors model each option and approach the market with the structure most likely to close at the best terms.

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Typical Deal Parameters

Equity Size	$5M to $100M+
Return Target	12–20%+ IRR (equity-type dependent)
Structure	JV LP, co-GP, preferred equity, participating preferred
Promote	Typically 20–30% above preferred return hurdle
Hold Period	3–10 years (asset and strategy dependent)
Capital Sources	Institutional equity funds, family offices, PE real estate, co-GP platforms