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Real Estate Joint Ventures Involving Private Equity Funds: Regulatory, Structuring, and Practical Considerations | Benesch

The real estate joint venture (JV) is an investment vehicle that combines investment or development power on one side with capital on the other to invest in a real estate platform. The investment or development power is provided by a “sponsor” (the individual or entity that creates, operates and executes the business plan for the JV) while the capital is usually provided by a mix of debt and equity, collectively referred to as the “capital pile”. This article focuses primarily on the capital investment (or “LP”) arm of the JV, and more specifically a specific source of equity: the private equity fund (PE Fund).

Originally published in ALI CLE’s The Practical Real Estate Lawyer – November 2022.

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