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Joint ventures

Combining one party's money with another's time and expertise on a project.

Professional analysis

Structure via an SPV with a shareholders' agreement or a contractual JV agreement. Define capital, preferred return, profit split, decision rights, deadlock and exit. Raising money from the public or from many investors can trigger FCA financial promotion and collective investment scheme rules — take regulatory advice.

Capital requirements

Provided by the capital partner; the operator contributes time and expertise.

Cost assumptions to budget for

  • Legal agreement
  • SPV set-up and accounts

Potential returns

Split per the agreed waterfall — see the calculator.

Main risks

  • Disputes without a clear agreement
  • Unregulated investment promotion
  • Partner insolvency

Legal checks

  • Shareholders' or JV agreement
  • Security for the capital partner (e.g. charge)

Regulatory checks

  • FCA financial promotion restrictions
  • Collective investment scheme rules

Is it suitable?

Often suits

  • Experienced operators with known investors

Usually not suitable for

  • Raising money from the public without regulatory advice

A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.

Step-by-step

  1. Agree terms in principle.
  2. Model the waterfall.
  3. Have solicitors draft the agreement.
  4. Set up the SPV and bank account.
  5. Report regularly to partners.

Financial calculations

Sale proceeds after all costs and debt.

Partner A (capital)
Partner B (operator)

Joint venture profit split

Partner A: capital returned£250,000
Partner A: preferred return£20,000
Partner A: profit share£25,000
Partner A: total£295,000
Partner B: capital returned£0
Partner B: preferred return£0
Partner B: profit share£25,000
Partner B: total£25,000
  • ⚠ Document the agreement with solicitors. Raising money from the public can be a regulated activity.

Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.

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Official sources

Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.

Not advice

This guide is general research. It is not legal, tax, financial, planning or investment advice. Speak to a qualified, regulated professional before acting.