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
- Agree terms in principle.
- Model the waterfall.
- Have solicitors draft the agreement.
- Set up the SPV and bank account.
- Report regularly to partners.
Financial calculations
Joint venture profit split
- ⚠ 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.
Create a free account to save calculations.
Official sources
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice