GP Coinvestment Advantage Calculator

GP coinvestment aligns GP interests with LP outcomes.

GP coinvest

LP capital

Deal IRR %

Years

Promote %

Total GP benefit

$15,141,965

Coinvest return

$5,028,393

Promote earned

$10,113,572

How the math works

Coinvest return = coinvest × (1+IRR)^years. Promote earned on LP profit × promote %.

$2.5M × 1.15^5 = $5.03M coinvest return + $10.1M promote on $50.6M LP profit = $15.1M total.

How to Use

Enter GP coinvest amount.
Enter LP capital.
Enter deal IRR %.
Enter years.
Read GP coinvest return + promote vs fee only.

Frequently Asked Questions

Coinvestment norms?

GP coinvest: 1-5% of LP capital standard. Premier GPs coinvest 5-10%. Institutional LPs often require minimum 1-3% to align interests. GP-founded funds may coinvest 10%+.

Alignment math?

GP with coinvest gets return on capital + promote. GP without gets promote only. Loss of coinvest signals failed deal more strongly than loss of promote. Alignment stronger with more skin-in-the-game.

Funding sources?

GP principal balance sheet. Personal savings. Bank line against GP equity. Family money. Institutional capital partners (less common). Large GPs have in-house coinvest pools with rolling commitments.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.