A joint venture (JV) is a contractual business entity created by two or more individuals or companies who have agreed to pool their resources to accomplish a specific task. A joint venture is based on a single business transaction different from a partnership which generally involves an ongoing, long-term business relationship. The JV is its own entity, separate and apart from the participants' other business interests. Corporations, partnerships, limited liability companies and other business entities can all be used to form a JV.
Advantages of a Joint Venture
By choosing to enter into a JV, individuals and companies can share and leverage their strengths, skills and abilities to achieve a common goal. This can minimize risks, increase competitive advantages, and allow for each party involved to make their capital go farther.
Team With Worcester
Worcester Fund seeks to invest with other commercial real estate developers, owners and operators in multifamily real estate projects, although other property types will be considered. The Fund’s investment can be structured in various forms-
Joint Venture Equity
Worcester will strategically joint venture with high capacity and high character partners.
Provide funds secured by a second lien or pledge of partnership interests to reduce the capital required by the sponsor and/or provide fresh capital for renovations and upgrades.
Ideal for situations where financing does not allow for subordinate debt; the Fund would receive a preferred return before cash flow is shared with the rest of the investors and sponsor. After the preferred return, the Fund is open to various waterfall options.