Joint ventures (JV)
What is a joint venture?
A joint venture is an arrangement between two or more companies or people to work together on a particular project.
In property, one party typically contributes capital and the other contributes a site, expertise or delivery. It can let you take on a project that would otherwise be out of reach, by sharing the funding and the reward.
Definition adapted from the Cambridge Dictionary.
Joint venture financing can suit developers who have the opportunity but not all of the capital.
Get in touch.
Complete the contact form, call us or email us to discuss your circumstances and requirements. A member of our team will contact you.
How a funding joint venture can work
(JV finance)
Equity partnership
We contribute capital in return for a share of the profit.
Loan plus profit share
Funding is structured as a loan, with an additional share of the profit.
Special purpose vehicle (SPV)
A company is set up for the project and each party holds an agreed share.
Exit
Agree at the outset how the venture ends, for example by selling the finished project or refinancing, and how the profit is shared.
What it can fund
Site purchase
Construction and build costs
Conversions
Professional fees and other development costs
What we look at
Every project is different. Tell us about your opportunity and we will let you know whether and how we could work together.
How it works with TIC Finance
Upon receiving an enquiry, TIC Finance will assess it for suitability and whether it is something we can take part in ourselves.
Tell us about the opportunity
Send us the site, the plan and your numbers.
We discuss the structure
We talk through how a joint venture could be set up, and what each party contributes.
Terms are proposed
If we are confident we can invest, we propose terms that set out each party's share, responsibilities and rewards.
Agreement and start
With legal agreements signed, the venture begins.
If we cannot take part directly
If TIC Finance is not able to take part directly, we will respond to let you know.
We will ask for your permission to approach our network on your behalf.
Associates, lenders and organisations who may be able to provide suitable options.
If applicable, we will support and help you throughout the process, should you need it.
Know the risks
In a joint venture you may share losses as well as profits, and be tied to your partner's obligations. Understand the repayment structure, who is responsible for what, and what happens if the project underperforms.
We recommend that you take independent legal and financial advice before you sign.
Joint venture arrangements for business and investment purposes are not regulated by the Financial Conduct Authority.
FAQs
Who is a joint venture suitable for?
Developers and investors with a defined property opportunity who would benefit from a funding partner, from first-time developers to experienced operators. TIC Finance is open to assisting with joint venture finance opportunities across the UK.
What is a joint venture agreement?
A legal document setting out the objectives of the venture, each party's responsibilities and contributions, how profits and losses are shared, and how disputes or exits are handled.
How is this different from development finance?
With development finance you borrow and repay with interest. In a joint venture, the funder shares in the project's outcome. See development finance for the lending route.
What are my responsibilities?
They depend on the terms agreed with your partner. You might be responsible for your share of any borrowing and for part of any losses. Make sure you understand the full terms first.