Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

equity kicker

Read a random definition: esplees

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

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:44
@2big2fail: looks like an Aristotle wannabe.
2big2fail
19:44
whatever. im just reading the financial times
1a2b3c4d26z
19:44
ft goated
concorde
19:45
I hate Dostoevsky
2big2fail
19:45
studying cloud computing, not the cloud of unknowing
babycat
19:45
@1a2b3c4d26z: serotonin is my fave houellebecq
1a2b3c4d26z
19:45
chefs kiss mwah
2big2fail
19:45
i honestly dont understand why people like houellebecq
1a2b3c4d26z
19:45
I'll try to describe how I feel about him
2big2fail
19:46
my favorite french authors are balzac and proust, as basic as that is
1a2b3c4d26z
19:46
basically I read his book and the whole time I read it I liked it so I finished it and I said hm I liked that book written by the author houellebecq
1a2b3c4d26z
19:46
balzac hahaha
2big2fail
19:46
lost illusions is goated
does it take longer to hear back if u applied to scholarships for schools like ucla???
Dkk
19:47
For Houellebecq I have only read https://en.wikipedia.org/wiki/Atomised
JumpySubsequentDolphin
19:47
you guys should read averroes
also do we think ucla wont do a wave tmw cuz they did a tiny one tonight, can schools do 2 days ina. row
JumpySubsequentDolphin
19:47
perhaps read the incoherence of philosophy first and then read averroes’ response: “the incoherence of the incoherence”
2big2fail
19:47
@Dkk: i read that one. just thought it was boring and not really in touch with reality
JumpySubsequentDolphin
19:47
SPLITTY usually they’re Friday!
Dkk
19:48
@2big2fail: I agree.
HUH then what the heck is this wave tonight ab are they tryna give us an attack???
babycat
19:49
@texaslawhopefully: don’t really remember it but my ibooks library says i read it in 2020. that whole year is a haze.
Dkk
19:51
My favorite book though, The Good Morty: https://archive.org/details/TheGoodMorty
Dkk
20:09
Man, I guess nobody like The Good Morty
2big2fail
20:10
didnt even look at it
Dkk
20:12
R.I.P.
Dkk
20:13
https://www.youtube.com/watch?app=desktop&v=0uzynaLi4Tg&t=0s such a minor joke, so good to me.
babycat
20:16
I hate The Good Morty
Dkk
20:21
I hate him too. So lame.
LSD+ is ad-free, with DMs, discounts, case briefs & more.