In UK property development finance, developer’s promote, also referred to as carried interest, is a profit-sharing mechanism that rewards developers with a share of profits exceeding a predetermined return hurdle. This incentive recognises the developer’s role in managing project risks, securing funding, and successfully delivering the development on time and within budget. Typically calculated as a percentage uplift on the developer’s equity investment, promote structures align the financial interests of both developers and investors. They are widely used in joint ventures and syndications, forming a key component of developer remuneration within the UK market.
This sits beneath Equity Contribution, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Preferred Equity to Common Equity, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Developer’s Promote / Carried Interest is most commonly encountered in connection with Strategic Land Loan within the property development capital stack.
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