Equity Partnership
Equity Partnership Program
At Torrey Highlands Investments, we offer prospective investors the opportunity to invest in one of our many profitable Equity Partnerships. THI is constantly seeking opportunities to be able to partner with proven and motivated investors to create profitable value by means of strategic capital and detailed operational insight. Our comprehensive strategies allow us to pair up with Equity Partners who share matching values and objectives for our lucrative investments.
A main objective in this program is to continuously provide Equity Partners with superb value, while maintaining equity ownership structure moving forward that protects owner-executives’ interests. All the while, making sure Equity Partners are constantly equipped with sufficient capital available to support any company needs.
Our professional team ensures maximum confidence in Equity Partners by means of retaining and incentivizing management, minimizing distraction, limiting disruption of operations, while guaranteeing location and employees.
Incentives for an Equity Partnership
- An Equity Partner who Shares Similar Views – We make sure to do the necessary background work to ensure you are teaming up with a partner who views and values the project in a similar way. We provide prospective Equity Partners with our operating styles, decision-making processes, investment timeframes, and exit objectives.
- Minimize Company Distraction – As the Equity Firm, we take full responsibility of handling all initial contacts and investors discussions. Our professional mindset entails that neither management nor employees are exposed to the project until certainty of a successful investment is met.
- Maintained Control Throughout – Torrey Highlands Investments specializes in utilizing a disciplined approach of vetting potential Equity Partners. We always evaluate to see if an Equity Partner is seen fit before undertaking our detailed process. We pride ourselves in maintaining control over distribution and timing of information while maintaining flexibility to amend the process at anytime.
Common Questions…
The area of investor oversight of project management and operations is one that can vary widely based on the level of sophistication, staffing, and nature of the equity investor. Nearly all equity investors, whether they structure their investments as pure equity or as mezzanine debt, will permit the developer partner to take charge of the basic development aspects of a project, including land assemblage, permitting, design, contracting, and marketing and leasing. In fact, many equity investors will not become involved in a project until following the completion of these activities.
The construction lender will require certain guaranties from the borrower’s principals, including a completion guaranty, a guaranty of non-recourse carve-outs, an environmental indemnity, and in many instances a full or partial payment guaranty. In general, the equity investor looks to the developer partner to provide the personal guaranties to the construction lender, without resort to the credit of the equity investor. Where the developer makes these personal guaranties, the agreement between the developer and the equity investor typically provides for pro rata contribution by the equity investor to the developer partner for any guaranty payments that are called on to be made to the construction lender, except in circumstances where the guaranty payment arises because of misconduct by the developer or actions of the developer for which it is liable to the equity investor.
The time horizon of the equity investor and its exit strategy are among the most critical elements in structuring the equity investment. High yield “hot” money investors are looking for their return of and on invested capital within a period of 2 to 4 years. “Patient” money investors can have time horizons of 7 to 10 years prior to seeking an exit from the investment. In any development project, maximum value is not achieved until the project is fully constructed and its operations stabilized, i.e., until the project is 90 percent to 95 percent leased and has been operating at pro forma economics for several consecutive months.
The overall goal of incorporating Equity Partnerships (Investors) is to help businesses make a profit. More specifically, Equity Partnerships do provide a few substantial benefits.
Growth: Bringing in a new partner can accelerate your company’s growth in multiple ways, that otherwise would unlikely occur. The funds that come along with an equity partner enable a business to launch new products, hire new employees, add facilities, and increase infrastructure, to name a few.
Sustainability: The truth of the matter is most start up/ new companies fail, and in some cases an equity partnership is the only means of sustaining a company long term.
An Equity Partnership (Equity Co-Investment) is a common form of business organization that consists of two or more people who join together to operate a business and share in the profits of the company. Partnership Equity is the percentage interest that a partner has in partnership assets. In other words, it represents the partner’s ownership interest in the company. The total contributions of all partners plus retained earnings are reflected on partnership’s balanced sheet as equity. Each partner has a separate capital account that represents that partner’s equity in the business.
An Equity Partnership is a popular choice for small businesses because it is easy to create and operate, it offers a great deal of management flexibility, the laws that govern partnerships are consistent throughout the country, and partnerships are subject to only one level of taxation as opposed to corporations.
Trusted Partners
Below are a few of our trusted industry partners.
