JV Equity Structures
Joint Venture Finance
structured to perform
30+ years · 110+ specialist lenders · £68.6m largest facility
Bring in an equity partner instead of borrowing the equity gap. We introduce developers to JV partners who contribute capital in exchange for a profit share — structuring the SPV, the waterfall, and the senior facility as one package.
£500k — £30m+
Loan Size
12 — 36 months
Typical Term
N/A — Profit Share
Typical LTV
Key Features
What We Offer
No Interest on Equity
JV equity carries no fixed interest. Your partner shares in the scheme profit rather than charging a monthly rate.
SPV Structuring
We structure the joint venture vehicle — LLP or limited company — with the shareholders' agreement, waterfall, and senior lender coordination built in.
Profit-Share Negotiation
Preferred return threshold, profit split, developer fee: all negotiable. We know current market terms and negotiate them for you.
8 Active JV Equity Providers
Direct access to 8 specialist equity providers, family offices and UHNW investors actively seeking UK development JV opportunities.
Full Capital Stack
We place the senior facility and the JV equity simultaneously — one team, one set of aligned documentation, no intercreditor conflict.
Ideal For
Common Scenarios
Equity-Light Developers
You have the site, planning and delivery expertise but not the equity to satisfy a senior lender. A JV partner fills the gap without adding fixed debt.
First-Time Developers
Track record matters, but the right JV partner accepts a less favourable split in exchange for a strong professional team and a well-consented scheme.
Scaling Across Multiple Schemes
Experienced developers who want to run several projects simultaneously without tying all personal capital into one SPV.
Land-Rich Developers
You own the site outright or control it. Contribute land as equity and JV for the build costs — reducing or eliminating the cash equity requirement.
Joint Venture FAQ
How JV development finance works
What is joint venture development finance?
A joint venture in property development is a funding structure where an equity investor — the JV partner — contributes the equity component of a scheme in exchange for a share of the development profit. The JV partner is not a lender: there is no fixed interest rate and no scheduled repayment. They are a co-investor whose return is tied to the scheme's outcome. Most JV arrangements use a special purpose vehicle (LLP or limited company) established for the specific development. The developer and JV partner hold shares or membership interests proportional to their contributions and the agreed profit split.
How is profit split between developer and JV partner?
Most JV partners require a preferred return before development profit is shared — commonly 8–15% per annum on their equity contribution, paid first on exit. Only profit above this threshold enters the split. Common split ranges run from 70/30 (developer/JV partner) to 50/50, depending on relative contributions. A developer bringing a fully consented site with a strong track record negotiates better terms than a first-timer bringing a site in pre-application. The split is negotiated, not fixed by the market.
JV equity vs mezzanine — which is better?
Both address the same structural problem — a gap between the senior lender's advance and the developer's available equity — but they behave differently. Mezzanine is debt with a fixed (rolled-up) coupon repaid in full on exit before any profit is split; the developer keeps all upside above the mezzanine cost. JV equity is ownership — the partner shares in the profit and the risk rather than charging interest, so it costs more if the scheme performs well but requires no repayment if it underperforms. As a rule: mezzanine where you want to retain all upside on a profitable scheme; JV equity where you need genuine risk capital, can't service more debt, or value what the partner brings beyond just capital.
What do JV equity partners look for?
JV equity partners are co-investors, not lenders — their due diligence reflects that. They look for: planning status (most require at least outline planning or a credible route to full permission); developer track record (two or more completed schemes in the same asset class attracts better terms); scheme viability (a sub-20% profit on cost is hard to finance on a JV basis as the preferred return eats deeply into the developer's residual share); exit certainty (pre-sales, a credible sales programme, forward commitment, or an institutional buyer relationship); and minimum size (most active providers in the UK work above £500k–£1m equity contribution).
How does JV equity work alongside senior debt?
JV equity rarely works alone — it typically completes a capital stack that starts with senior development debt. A typical structure: senior lender provides 60–70% of GDC on a first charge; the JV partner provides 25–35% via the SPV, subordinated to senior debt; the developer contributes land, planning, or a small cash stake. If a senior lender is involved alongside JV equity, the senior lender and JV partner must agree the waterfall structure — the order in which proceeds are distributed on exit. This is documented in the SPV's shareholders' agreement or LLP agreement. We structure the whole stack as one package.
Related
The rest of the capital stack
Mezzanine Finance
Debt that fills the equity gap — fixed coupon, you keep all upside. The alternative to JV equity on strong-margin schemes.
Development Finance
The senior debt that JV equity sits alongside. How ground-up facilities are structured and priced.
Equity Finance
Broader development equity — preferred equity, pure profit-share, and institutional equity structures beyond the JV model.
Ready to Discuss Your Project?
Get a development appraisal or arrange a call with a specialist.