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LSDefine

Simple English definitions for legal terms

equity kicker

Read a random definition: ad omissa vel male appretiata

A quick definition of equity kicker:

Equity kicker: When someone lends money for a project, they might ask to become part owner of the project too. This is called equity participation or an equity kicker.

A more thorough explanation:

Equity kicker is a term used in finance that refers to a type of equity participation. It is a condition where a lender is given a share in the ownership of a project as a requirement for granting a loan. This means that the lender will receive a portion of the profits or gains from the project in addition to the interest on the loan.

Let's say a real estate developer wants to build a new apartment complex but needs a loan to finance the project. The lender may require an equity kicker as a condition for granting the loan. This means that the lender will receive a percentage of the ownership in the apartment complex and will share in the profits from the project.

For example, if the lender requires a 10% equity kicker, they will receive 10% ownership in the apartment complex and will share in 10% of the profits. If the project is successful and generates a profit of $1 million, the lender will receive $100,000 in addition to the interest on the loan.

Another example is a startup company that needs funding to grow its business. The investor may require an equity kicker as a condition for investing in the company. This means that the investor will receive a share in the ownership of the company and will share in the profits or gains from the company's success.

Overall, an equity kicker is a way for lenders or investors to mitigate their risk and increase their potential returns by sharing in the ownership and profits of a project or company.

equity jurisprudence | equity loan

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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