Joint Venture GP Coinvest Calculator

GP coinvest alongside LP in JV aligns interests and amplifies sponsor returns.

Total JV equity

GP coinvest %

LP preferred return %

Promote split to GP %

Expected deal IRR %

Hold years

Blended GP IRR

0.32%

GP coinvest $

$2,000,000

GP promote $

$3,461,450

How the math works

GP gets coinvest return + promote from LP's profit above pref. Blended IRR on GP dollar.

$2M coinvest at 18% = $4.57M. + $5.76M promote → $10.33M / $2M for 5yr = 39% GP IRR.

How to Use

Enter total JV equity.
Enter GP coinvest %.
Enter LP preferred return %.
Enter promote split %.
Enter expected deal IRR %.
Enter hold years.
Read blended GP IRR.

Frequently Asked Questions

Why GP coinvest?

Shows alignment with LP: sponsor has skin in the game. Amplifies GP returns beyond promote alone. Typical coinvest: 5-15% of total equity. On $20M deal with 10% coinvest: GP puts up $2M. Combined with 20% promote on LP's $18M, GP sees both coinvest return + promote — can 2-4x GP IRR vs promote-only structure. Most LP Investors require 3-5% minimum coinvest for institutional deals.

Coinvest vs fund commitment?

Deal-by-deal coinvest: GP invests per transaction, negotiates new terms each time. Flexibility but fundraising-intensive. Blind-pool fund coinvest: GP commits % of total fund, allocated pro rata across all fund investments. Simpler but locks in terms. Programmatic coinvest (repeat JV partnerships): 20-30% of institutional real estate flows through programmatic JVs between sponsor and institutional LP.

Tax treatment?

GP coinvest dollars: personal capital, flows through deal tax-efficiently (depreciation, interest deduction, passive income). Promote: carried interest taxed at LTCG rates (held 3+ years under 2017 law). Combined: GP earns LP-level returns on coinvest + carry income on promote. Strong tax efficiency at top marginal rates.

LP perspective?

LP prefers higher coinvest (more GP alignment). Typically demands 2-10% minimum. Watch for 'phantom coinvest' — GP borrows to fund coinvest, diluting alignment. Prefer clean cash-on-cash coinvest. Institutional LPs (pensions, endowments, sovereign wealth) expect transparent GP coinvest details in every subscription document. Demand verification via GP personal tax returns or attestation.