Joint Venture & Co-GP Webinar - How to Close Deals with Peers & Partners in the Family Office Club

TL;DR

This webinar provides an introduction to joint venture and Co GP strategies, with case studies and insights on how to approach your first joint venture deal.

Transcript

all right welcome everybody to the joint venture & Co GP strategies webinar my name is Richard C Wilson from the family office Club and we're covering this topic because there's been a lot of business getting done between family office Club members who are sponsors investment firms that run investment funds as well as between family offices and ind... Read More

Key Insights

• 🤝 Joint ventures and Co GP strategies provide leverage, credibility, and scalability in investment deals.
• 😫 Complementary skill sets in partnerships enhance the overall effectiveness of a joint venture.
• 🇨🇷 Equity can be used to attract knowledgeable partners and share due diligence costs.
• 💪 The Nashville market has remained relatively strong during the COVID-19 crisis, with industrial and multifamily sectors being preferred investment types.

Questions & Answers

Q: How can you ensure that your first joint venture deal is successful?

One key aspect is to present a strong deal with solid merits and conduct thorough research on the market and potential partners. Choosing partners with complementary skill sets is crucial. Offering equity to experienced partners may help in getting deals closed.

Q: What role does the size of a deal play in its success?

While bigger deals may seem intimidating for first-time joint venture partners, it can actually be easier to find investors for larger deals compared to smaller ones. Leveraging relationships and bringing in a team with a proven track record can mitigate the risks associated with larger deals.

Q: What are the advantages of structuring a deal as a Co GP in an opportunity zone?

An opportunity zone deal can offer tax benefits, but it is advisable not to underwrite these benefits into internal rate of return (IRR) projections. High teens returns over a 10-year hold are still expected, regardless of the opportunity zone structure.

Q: How do you lock up a deal before finding a joint venture partner?

It is recommended to negotiate a longer due diligence period, preferably 120 days, before locking up a deal. Conducting thorough research beforehand, building relationships, and having a teaser version of the deal can help attract potential joint venture partners.

Summary & Key Takeaways

• The webinar covers the topic of joint venture and Co GP strategies, which have been increasingly used by family office club members for business collaborations and deal-making.

• The host introduces the Family Office Club and its offerings, including proven capital raising strategies and access to investor leads.

• The guest speaker, Meg Epstein, shares two case studies of successful joint venture and Co GP deals in the real estate development industry.

• The importance of speed, focus, potential ROI, and gaining momentum through joint ventures is discussed.

• Key insights include the significance of complementary skill sets in partnerships, leveraging relationships for equity, and the size and location considerations for deals.

• The impact of the COVID-19 crisis on the Nashville real estate market is briefly discussed, with insights on the industrial and multifamily sectors being preferred investment types.