JV equity for development
Capital partners who fund the equity in return for a share of the profit.
What JV equity is
JV equity is risk capital provided by an investment partner to fund part or all of the equity a scheme needs after senior and mezzanine debt. Instead of charging interest, the equity partner shares in the profit, usually after a preferred return and a profit-share split agreed up front. It lets a developer take on schemes larger than their own balance sheet would allow.
We introduce developers to family offices, funds and private capital actively seeking development opportunities, and we structure the arrangement: the preferred return, the profit-share waterfall, the level of control and the exit mechanism. A well-built joint venture aligns both parties so the partner is rewarded for backing the scheme and the developer keeps a meaningful share of the upside.
- Funds the equity layer above senior and mezzanine
- Returns paid as profit share, not interest
- Access to family offices, funds and private capital
- Structured with preferred return and profit-share split
Indicative terms
- Equity investment£250k to £20m+
- Profit shareNegotiated, often 40 to 60% to the partner
- Preferred returnCommonly structured ahead of the split
- ControlPassive to active, by agreement
- ExitUsually at completion or sale
Indicative only. Terms vary by lender, scheme and borrower and are not an offer of finance.
Who it suits
- Developers scaling beyond their own capital
- Landowners seeking a development partner
- Schemes needing the equity layer filled
Discuss jv equity
A view on fundability within one working day.
How a development joint venture is structured
Scheme and partner fit
We assess the scheme and match it to capital partners whose mandate, sector and ticket size fit.
Waterfall and preferred return
We structure the profit-share waterfall, the preferred return that ranks ahead of the split, and each party's contribution.
Governance and control
We agree decision-making, draw control and reporting so the developer delivers while the partner has the protections it needs.
Exit and profit split
On completion and sale, debt is repaid, the preferred return is paid, and profit is split per the agreed waterfall.
Developers and schemes that attract equity partners
JV equity suits developers scaling beyond their own capital and landowners seeking a development partner. Capital partners back credible teams with a clear track record, a well-margined scheme and a defensible exit. The stronger the scheme and the team, the keener the profit-share terms a developer can negotiate.
How much equity a partner will fund
An equity partner can fund part of the equity alongside the developer or the whole equity layer above the debt, with investment commonly ranging from £250k to £20m and upward. The more of the equity the partner funds, the larger the profit share they expect in return.
How equity partners are rewarded
An equity partner is rewarded through profit share rather than interest, commonly 40 to 60 percent of profit, often after a preferred return paid ahead of the split. The cost is therefore tied to the scheme's success, which aligns the partner with delivery but means a strong scheme shares more of its upside than a debt-only structure.
JV equity versus mezzanine debt
Mezzanine is debt repaid with interest and keeps more profit with the developer, but it must be serviced from the scheme regardless of outcome. JV equity funds the gap in return for a profit share, commits no fixed coupon, and shares both risk and reward. Developers short of equity but confident in the scheme often blend the two.
JV equity: common questions
What share of profit does a JV equity partner take?
It is negotiated scheme by scheme, commonly 40 to 60 percent of profit to the partner, often after a preferred return. The split reflects how much of the equity the partner funds and the risk they carry.
Will I lose control of my scheme?
Not necessarily. Control ranges from passive to active depending on the agreement. We help structure governance so the developer retains day-to-day delivery while the partner has the protections they need.
What is a preferred return?
It is a return paid to the equity partner ahead of the profit split, compensating them for putting capital at risk first. The developer's profit share follows once the preferred return is met.
Can I combine JV equity with debt?
Yes. Most JV-funded schemes also carry senior and often mezzanine debt; the equity partner funds the layer above the debt. We arrange the whole stack so it holds together.
Discuss jv equity
Send us your scheme and we will come back with a view on fundability and likely terms within one working day.