This is a provision found in real estate partner agreements where a special distribution tier is incorporated into the equity waterfall that allows a general partner to “catch up” with the limited partner’s cash flow distributions. A general partner’s distributions might lag due to the terms of the partnership structure.
Catch Up Provision
This is a provision found in real estate partner agreements where a special distribution tier is incorporated into the equity waterfall that allows a general partner to “catch up” with the limited partner’s cash flow distributions. A general partner’s distributions might lag due to the terms of the partnership structure.
