The real estate joint venture (JV) is an investment vehicle that marries investment or development competence on one hand with capital on the other to invest in a real estate platform. The investment or development competence is supplied by a “sponsor” (the individual or entity that creates, operates, and executes on the business plan for the JV) while the capital is generally supplied by a mix of debt and equity, referred to collectively as the “capital stack.” This article focuses primarily on the capital investment (or “LP”) arm of the JV, and, more particularly, a specific source of equity: the private equity fund (PE Fund).

Originally published in ALI CLE’s The Practical Real Estate Lawyer - November 2022.