The traditional real estate private equity fund model has well-known limitations. Investors commit capital to a blind pool, trust the general partner’s allocation decisions across an unknown portfolio of assets, and often wait years to see meaningful return of capital. For investors with specific market views or asset preferences, this lack of selectivity is frustrating.

Co-investment structures address this directly. Rather than committing to a fund, investors participate alongside the sponsor in individual, identified transactions. You know the asset, you know the market, you know the projected return profile before you write the check.

Fourtenn structures its investment partnerships on this basis. Each development opportunity is presented as a discrete co-investment with its own equity structure, governance terms, and projected return profile. Investors review full underwriting — including market studies, operator agreements, and construction budgets — before committing capital.

The typical structure involves a joint venture between Fourtenn as the operating member and co-investors as limited partners. Fourtenn retains development oversight and operational management responsibility. Limited partners receive current yield where the project cash flows permit it, and participate in equity appreciation at sale or refinancing.

Preferred return provisions protect co-investors’ capital in the waterfall. Typical structures include an 8% preferred return before any promote is earned, with a tiered carried interest arrangement thereafter. Governance rights — including major decision approval, audit access, and information rights — are negotiated on a transaction-by-transaction basis.

For investors evaluating their first co-investment, the key questions are: What is the sponsor’s development track record in this specific asset class and geography? How conservative is the underwriting? What are the exit assumptions? Fourtenn is happy to walk prospective partners through our methodology in detail.