JV equity finance

Development capital provided by an equity partner in exchange for a share of profit, used where debt leverage alone — even with mezzanine — isn't enough to fund a scheme.

Get indicative terms

Contribution the gap above senior/mezz debt

Term matches the scheme

Return profit share / preferred return + promote

Position above all debt tranches

Indicative figures — subject to status, valuation and lender criteria.

Senior

Stretch senior

Mezzanine

JV equity — this product

What is JV equity finance?

JV equity finance sits above debt in the capital stack: an equity partner funds the portion of a scheme that debt won't reach, in return for an agreed share of profit rather than interest. Structures vary from a straightforward profit share to a preferred-return-plus-promote arrangement, depending on how the risk and reward are split.

It suits developers with strong site-finding and delivery capability but limited capital of their own, or experienced developers who would rather share profit on more schemes than tie up their own equity in fewer, larger ones.

Who it's for

Developers with a strong scheme and delivery track record but limited equity of their own.

Experienced developers who prefer to share profit across more schemes than concentrate their own capital in fewer.

Land-led opportunities where the developer's contribution is the site itself, negotiated into the equity split.

How it works

01 Present the scheme and your role. Site, appraisal, and what you bring — delivery, planning gain, site introduction, or capital.

02 Matched against equity partners. The panel includes family offices, private equity and specialist development-equity funds with different appetite by scheme size and asset class.

03 Structure agreed. Profit share, preferred return and promote, and control/decision rights are negotiated before debt is arranged alongside.

04 Debt arranged on top. Senior (and where needed, mezzanine) debt is then structured against the agreed equity position.

Eligibility

Equity partners weigh track record, the scheme's margin, and the developer's role in delivery more heavily than a debt lender would. A first scheme with an experienced delivery partner alongside is more fundable than a first scheme delivered solo.

Costs

No interest rate — instead a profit share or preferred-return-plus-promote structure, agreed case by case. Indicative figures — subject to status, valuation and lender criteria.

When to use jv equity finance vs. the alternatives

Mezzanine finance → you would rather service a higher blended cost of debt than give up a share of profit

Senior development finance → standard senior leverage, with your own equity, already funds the scheme

Questions on jv equity finance

How much of the profit does an equity partner take?

It varies by scheme risk, the partner's contribution and your own role in delivery — commonly structured as a preferred return to the partner plus a promote once that return is met, rather than a flat percentage.

Do I lose control of the scheme?

Control and decision rights are negotiated as part of the structure; most JV agreements set out clear reserved matters rather than handing full control to the equity partner.