Limited Partnership/Joint Venture Model

With a limited partnership fund model, you can forecast and analyse cash flows on the partnership’s investments and project the partnership’s income statement, balance sheet and cash flow statements for the remaining life of the fund. A limited partnership model almost always requires adjustments to the standard model structure. This enables the model to account for all details of the actual vehicle structure, as well as definitions, calculation methods and financing agreements.

This model has primarily been used by real estate fund managers and listed property companies managing large real estate portfolios.

Use the partnership fund model to

• Forecast each partner’s expected future drawdowns, distributions and IRRs;
• Evaluate new acquisitions and disposals, and their effect on partnership financials;
• Evaluate how certain business plan decisions affect return expectations, risk level, financial covenants and liquidity constraints;
• Evaluate potential changes in the partnership’s capital structure, including refinancing and recapitalisation;
• Run what-if scenarios to estimate how much adverse movement in key parameters, such as property yield, market rental level or interest rates, the partnership can sustain before it risks running out of cash or defaulting on covenants

The model incorporates

• Partnership and financing agreement terms, structure and calculation methodologies;
• All individual lease agreements and budgets with automatic data transfer;
• Property-by-property valuations and future values;
• Asset-specific exit timing adjustment possibilities;
• Leverage and interest rate hedging instrument modelling;
• Prognosis of partnership financial statements for each vehicle entity;
• Tax leakages for each entity;
• Performance fees, including clawback or catch-up provisions