Typical: 8% pref to LPs → 70/30 LP/GP → 60/40 above a 15% IRR. GPs earn more the better the deal performs.
Investing Strategy
LP / GP Split
The waterfall dividing profit between passive Limited Partners (LPs) and the active General Partner (GP/sponsor) in a syndication.
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- Syndication— A group investment where a sponsor raises capital from passive Limited Partners to acquire…
- Preferred Return (Pref)— An LP's first-dollar return threshold — usually 6–9% annually — that must be paid before t…
