Backend Splits

Some entities provide for incentive splits of proceeds on sale to the general partner, usually conditioned on the real estate value crossing a specified threshold or returns to the limited partners exceeding a specified amount. Such provisions require that the valuer make special allocations. PVX cannot make different allocations of cash flows and reversionary NAV (at the end of year 10), but this feature is planned for a future release of PVX. At present, a separate DCF model must be prepared. You can read more on backend splits here.