Co-GP equity 7x the track record 4x the profit
Ammann Capital raises programmatic co-GP equity and joint venture LP equity for middle-market real estate sponsors. A co-GP partner funds 80 to 90% of your GP co-invest, so the cash for one deal closes seven.
Programmatic co-GP equity
Same cash.
One deal or seven.
Scroll to see what $3.5 million of your own cash controls.
One deal.
Your whole GP check.
A $100 million acquisition with $35 million of equity. You write the 10% GP co-invest yourself: $3.5 million.
A co-GP partner funds 85% of it.
Your check drops to $0.5 million a deal. In this example the co-GP receives 35% of the promote.
The same $3.5 million now closes seven.
Seven deals, $700 million acquired, and fees on every one.
About 4x the sponsor profit.
Illustration, not a projection. Per deal: $100 million acquisition, $35 million of equity, 10% GP co-invest, 2.2x gross deal-level return over five years (about 19% IRR; 1.95x and about 16.5% net to the LP), 8% preferred return, 80/20 promote. Fees per deal about $2.6 million: 1% acquisition, about 1% of revenue asset management, 3% of revenue property management; no disposition or guarantee fees. Facility: the co-GP funds about 85% of each GP check (sponsor $0.5 million per deal) for 35% of the promote. Equity multiple is co-invest distributions plus promote, divided by sponsor cash; fees are shown separately. Terms are negotiated per program.
Co-GP equity and JV LP equity, placed by one advisor.
Programmatic co-GP equity
GP co-invest capital that funds most of your GP check, deal by deal or as a program committed across your next ten deals. Most of what we place is multifamily co-GP equity, for acquisitions and ground-up development.
- 80 to 90%
- of your GP co-invest, funded by the co-GP partner
- About 25 to 50%
- of the promote goes to the co-GP. You keep the rest and run the deal.
- One agreement
- Programmatic terms are set once, then each deal that fits is funded.
Joint venture (JV) LP equity
Institutional and private LP equity for core-plus, value-add and opportunistic real estate, including multifamily JV equity and multifamily LP equity, in every market nationwide.
- Up to 90%
- of a project's equity requirement
- $5M to $50M
- typical check, as low as $2 million and above $100 million
- Deal or program
- Raised for a single asset or across a pipeline.
What is co-GP equity?
Co-GP equity is capital from a partner who invests at the general partner level of a real estate deal. The co-GP funds most of the sponsor's required GP co-investment and receives a share of the promote in return.
In a joint venture, the LP brings most of the equity and expects the GP to invest alongside it, typically 10% of the total. That GP co-invest is what limits a growing sponsor. A co-GP equity partner writes most of that check, the sponsor keeps control and most of the promote, and the sponsor's cash goes further.
When one partner commits to a sponsor's next several deals under terms agreed once, it is called programmatic co-GP equity. Most of what we place is programmatic.
Co-GP vs LP equity
| Co-GP equity | LP equity | |
|---|---|---|
| What it funds | The GP's co-invest, usually 80 to 90% of it | Most of the deal's equity, up to 90% |
| What it earns | Its share of returns plus part of the promote | A preferred return and a profit split |
| Role | Partner at the GP level with approval rights over major decisions | Passive investor with major-decision rights |
| Cost to the sponsor | About 25 to 50% of the promote | The LP's share of profits |
Where the GP co-invest sits in a $30 million deal.
The LP sees a fully funded GP. The lender sees the same sponsor and the same guarantor. The only change is who wrote the GP check.
- $20,000,000Senior loan
- $9,000,000LP equity
- $900,000Co-GP equity
- $100,000Your cash
Recent equity placements.
Who the capital comes from
Family offices, private equity funds, pensions, insurance companies, endowments, foundations, hedge funds, asset managers and high net worth individuals.
Asset types we raise co-GP equity for.
- Multifamily
- Industrial
- Senior housing
- Rescue capital and GP recapitalizations
- Workforce housing and build-to-rent
- Single-tenant net lease development
- Grocery-anchored retail
- Medical office
- Small-bay industrial, outdoor storage and flex
- Office-to-residential conversion
- Student housing
- Hotels
- Self storage and storage condos
- Manufactured housing and RV
- Data centers
- LIHTC and affordable housing
How a programmatic co-GP equity raise works.
- ReviewWe go through your track record, pipeline and current capital structure.
- StructureWe size the program: number of deals, GP check per deal, etc.
- PlacementWe take it to the investors whose mandate fits your strategy and markets.
- TermsYou receive term sheets and choose a partner.
- CloseDocuments are signed once. Each later deal is funded under the same agreement.
Michael Ammann
Founder and Managing Principal. Real estate capital advisory and equity placement.
Michael founded Ammann Capital and runs every engagement personally. Before that he was a principal on several real estate projects and handled acquisitions for Stellar Management, one of the largest landlords in New York City.
Earlier he was a portfolio manager at the hedge fund Axiom International Investors, where he co-managed $200 million in assets. Before finance he played professional lacrosse.
Email MichaelQuestions sponsors ask.
What is co-GP equity?
Co-GP equity is capital invested at the general partner level of a real estate deal. The co-GP funds most of the sponsor's GP co-invest, usually 80 to 90%, and receives a share of the promote in return.
What is a co-GP in real estate?
A co-GP, or co-general partner, is an investor who joins the sponsor in the GP position of a deal, funding part of the GP co-investment and sharing in the GP economics.
What is GP co-invest?
GP co-invest is the cash a sponsor must invest alongside its LP, typically 10% of a deal's equity and often 10 to 20% on development.
What is programmatic co-GP equity?
A programmatic co-GP partner commits to a series of deals under one set of terms. Each deal that fits the agreed criteria is funded on a short approval, so the sponsor knows the GP equity is in place before going to contract.
What is the difference between co-GP and LP equity?
Co-GP equity funds the GP's co-invest and shares in the promote. LP equity funds most of the deal and earns a preferred return and a profit split.
Is co-GP equity a loan?
No. It is equity invested at the GP level. There is no fixed interest rate and no maturity date. The co-GP is paid from the deal's cash flow and sale proceeds, like any other equity.
What does co-GP equity cost?
A share of the promote. About 25 to 50% is typical on the programs we arrange.
Do you raise multifamily co-GP equity and multifamily JV equity?
Yes. Multifamily is our largest category, for acquisitions, value-add and ground-up development. We place both the co-GP equity and the JV LP equity.
Do you also raise the LP equity?
Yes. We raise joint venture LP equity deal by deal or as a program, with typical checks of $5 million to $50 million.
Tell us about your pipeline.
Send the next deal or the next ten. You will hear back from Michael directly.