At the Variant level, sponsor promote structures are distinguished by how carried interest is accelerated, deferred, or phased within the equity distribution waterfall. These classifications sit within common equity and define the sequencing of returns between investors and sponsors after preferred return hurdles are satisfied. The level clarifies priority, risk alignment, and timing of sponsor participation, enabling consistent comparison across development finance structures.
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Catch-Up Promote (50/50 Until Waterfall) is a Variant of the Sponsor / Promote Carry Type, sitting within the Common Equity Class under the Equity Category in UK property development finance. This hierarchy makes its priority and payout profile clear. Investors receive preferred return first, then distributions are split equally during sponsor catch-up. After completion, distributions revert to the standard waterfall.
Equity → Catch-Up Promote (50/50 Until Waterfall): Variant
Equity is a core Category in the capital stack for UK property development finance. This placement clarifies its relationship to other major capital stack groups. It represents capital contributed by developers or equity investors, sitting beneath debt funding. Equity bears first-loss risk but underpins lender confidence and potential returns in structured UK transactions.
Equity → Common Equity → Catch-Up Promote (50/50 Until Waterfall): Variant
Common Equity is a Class within the Equity Category in UK property development finance. This placement defines how its instruments share risk and return. It sits at the bottom of the capital stack and is repaid only after debt and preferred equity. It carries the highest risk but retains full exposure to residual profit and is provided by the developer.
Equity → Common Equity → Sponsor / Promote Carry → Catch-Up Promote (50/50 Until Waterfall): Variant
Sponsor / Promote Carry is a Type within the Common Equity Class, under the Equity Category in UK property development finance. This placement explains how it interacts with related Classes and Variants. It allocates a profit share to the sponsor after investor returns. It is paid through equity waterfalls rather than as an upfront fee.
Equity → Common Equity → Sponsor / Promote Carry → Variants
20% Promote Over 8% IRR is a Variant of the Sponsor / Promote Carry Type, sitting within the Common Equity Class under the Equity Category in UK property development finance. This hierarchy shows its precise function within the capital stack. It defines a performance-based equity incentive where the sponsor earns 20% of surplus returns after an 8% IRR hurdle. It aligns sponsor rewards with investor outcomes.
Promote Structured into Co-GP Role is a Variant of the Sponsor / Promote Carry Type, sitting within the Common Equity Class under the Equity Category in UK property development finance. This context defines how risk and return are shared between stakeholders. The sponsor receives equity instead of cash. Governance rights and long-term alignment are strengthened.
Promote with Clawback is a Variant of the Sponsor / Promote Carry Type, sitting within the Common Equity Class under the Equity Category in UK property development finance. This hierarchy shows its precise function within the capital stack. It permits recovery of carried interest if returns underperform. The structure preserves alignment between sponsor reward and ultimate investor outcomes.
Tiered Promote (10%, 20%, 30%) is a Variant of the Sponsor / Promote Carry Type, sitting within the Common Equity Class under the Equity Category in UK property development finance. This hierarchy shows its precise function within the capital stack. The structure increases sponsor promote as investor return thresholds rise. It aligns incentives with investor performance across the stack.