![]() ![]() Partnerships have advantages and disadvantages that must be considered when you’re determining if you actually need a real estate partner. ![]() Also in July 2020, ILPA released a new “Deal by Deal” Model LPA to the marketplace to provide additional flexibility in the utilization of the ILPA Model.A Real Estate Investment Partnership is a legally binding agreement to operate a business together in the real estate investment industry. A one page summary of the “Whole of Fund” Model LPA is available below and here (changes from the original document are outlined on pages 3 and 4). The original version of the “Whole of Fund” Model LPA was released in October 2019, in July 2020 revisions were made. Through an extensive process of drafting and negotiation, these attorneys, along with the ILPA team, drafted a Model LPA for private equity. The ILPA Model LPA project is part of ILPA’s broader LPA Simplification Initiative and began in early 2018, with a group of approximately 20 attorneys representing both GPs and LPs in the global marketplace. ILPA has released two comprehensive, Delaware law-based model LPAs that can be used to structure investments into a traditional private equity buyout fund, including either a “whole of fund” distribution waterfall or a “deal by deal” distribution waterfall economic arrangement. Similarly, Limited Partners (“LPs”) wish to have fair and transparent terms that explain rights and obligations, while also lowering their legal negotiation costs. General Partners (“GPs”) have an interest in reducing the length of side letter agreements, providing fundraising certainty, and lowering their fund formation costs. ![]()
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December 2022
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