Capital Structure & Equity Equity Multiple Total cash distributions divided by total equity invested over the life of an investment.
Capital Structure & Equity Fund of Funds (FoF) An investment vehicle that invests in multiple real estate funds for diversification.
Capital Structure & Equity General Partner (GP) The active managing partner in a partnership with full liability and operational control.
Capital Structure & Equity Hold Period The expected length of time investors keep their capital in a deal before exit.
Capital Structure & Equity Hurdle (Multiple) A specified equity multiple a deal must exceed before the sponsor earns the next promote tier.
Capital Structure & Equity Investor Pro Rata Investors investing in proportion to their existing ownership share.
Capital Structure & Equity J-Curve The early dip in fund returns before assets mature and produce gains.
Capital Structure & Equity Joint Venture (JV) A business arrangement where two or more parties pool resources for a specific project.
Capital Structure & Equity Limited Partner (LP) A passive investor in a partnership with liability limited to their investment.
Capital Structure & Equity Open-End Fund A fund that continuously accepts new investors and allows periodic redemptions.
Capital Structure & Equity Pari Passu Latin for "on equal footing" — investors share in distributions proportionately.
Capital Structure & Equity Capital Call A formal request to investors to fund a previously committed amount.
