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Investing Strategy

LP / GP Split

The waterfall dividing profit between passive Limited Partners (LPs) and the active General Partner (GP/sponsor) in a syndication.

Typical: 8% pref to LPs → 70/30 LP/GP → 60/40 above a 15% IRR. GPs earn more the better the deal performs.

Related

Terms

  • Syndication
  • Preferred Return (Pref)

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