Syndication
Running the deal
The years between the closed raise and the exit. The economics that split every dollar, the governance and operations that run the property, and the reporting that is nearly all the investor has once the money is in.
Once the raise closes and the property is bought, the deal enters its long middle: the years of actually owning and operating the asset, splitting the money it produces, and keeping the investors informed. This is the least dramatic part of a syndication and, over the life of a deal, the part where most of the value is either built or quietly lost. It runs through three stages: the economics that divide every dollar, the governance and operations that run the deal, and the reporting relationship that is almost all a passive investor has to go on.
The middle years are where the deal is actually run, and where the terms signed at the start are lived with rather than negotiated.
This group holds the stages of the hold. Economics and the waterfall is the machinery that splits the money, the preferred return, the promote, the fees, the clawback, read as the sponsor’s upside and the investor’s cost at once. Operating the deal is the governance layer, who controls it, who votes, how a sponsor is removed, how capital calls work, plus the operational reality of taking over a property and running it. And reporting and investor relations is the ongoing relationship, what investors should receive, when cash should be distributed versus held, and how honest reporting is both good relations and legal protection.
Each section hub below teaches its stage in full. Start with the economics, or jump to the stage you need.