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Real Estate Glossary

Catch Up Provision

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Written by Luis Escobar

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.

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.

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Luis Escobar

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