Toolkit
JV Analyser
Compare a development joint venture against senior debt — profit waterfall, crossover GDV, developer return on equity.
SCHEME & TERMS
DEVELOPER EQUITY (BALANCE)
£849k
Funder pref10% p.a.
Developer profit split60%
Term18 months
Senior debt rate (compare)11% p.a.
Developer outcome — JV vs senior debt
UNDER JV
£553k
65.2% on equity
UNDER SENIOR DEBT
£904k
106.5% on equity
At this GDV, the developer is £351k better off under Debt. The scheme's profitable enough that a JV gives away upside; debt is cheaper.
JV PROFIT WATERFALL
Gross profit£1.10m
Funder pref (10% · 18mo)£180k
Residual£922k
→ Developer (60%)£553k
→ Funder (40% + pref)£549k
FUNDER RETURN
JV — total£549k · 45.7%
JV — annualised (simple)30.5%
As senior debt — interest£198k · 16.5%
JV uplift vs lending£351k
DEVELOPER RETURN ON EQUITY vs GDV
CROSSOVER ≈ £2.27m GDV
Developer under JVDeveloper under senior debtdotted grey = current GDV
Observational model · all-equity JV, profit-share waterfall · annualised figures are simple (not IRR) · loss shared pro-rata to capital · not a lending recommendation.
How it works
- A JV pools capital and delivery — one side funds, the other brings the site and runs the scheme.
- Returns follow a waterfall: capital back, preferred return, then profit split.
- Compare the model above against senior debt to see where the developer is better off at this GDV.
Overview only — not legal, tax or lending advice.