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Vorzugsrendite

English translation: preferred return

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Vorzugsrendite
English translation:preferred return
Entered by: Beate Lutzebaeck
Options:
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- Include in personal glossary

00:10 Mar 11, 2002
German to English translations [PRO]
Bus/Financial / Venture capital / private equity funds
German term or phrase: Vorzugsrendite
The entire sentence reads:

Nach Ausschüttungen in Höhe des jeweils gezeichneten Kapitals zzgl. einer Bonus-Verzinsung (6% p.a.) sowie einer Vorzugs-Rendite (10% p.a.), erhalten die geschäftsführenden Kommanditisten einen Catch-Up, bis sie jeweils 7,5% aller bereits ausgeschütteten Renditen erhalten haben, so daß dieser bei einem entsprechenden Ergebnis zwischen den Anlegern und den geschäftsführenden Kommanditisten im Verhältnis 85 : 15 verteilt wird.

Please note: I can render a literal translation myself and am therefore only interested in answers that provide relevant references for the proper English term used. TIA
Beate Lutzebaeck
New Zealand
Local time: 03:45
preferred return
Explanation:
The formulas for distribution of returns to equity investors are evolving to meet the requirements of individual projects and market conditions. Under the limited liability company structure, it is becoming common for the managing member (comparable to a general partner) to put the deal together, invest minimal cash, and receive the management contract on the hotel. The other members of the LLC frequently receive a moderate preferred return, often in the 7-10 percent range, with the remaining proceeds being distributed on a percentage basis among the members and managing member. The managing member often receives an additional promotional interest for its development efforts.



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Note added at 2002-03-11 01:05:40 (GMT)
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Preferred return : The preferred return is a minimum annual internal rate of return sometimes promised to the limited partners before the general partner shares in profits. In effect, the preferred return ensures that the general partner shares in the profits of the partnership only to the extent that the investments perform well. Once the preferred return is met, there is often a catch-up period in which the general partner receives the majority or all of the profits until it reaches the agreed upon profit-split, as determined by the carried interest.

Catch-up : This is a common term of the private equity partnership agreement. Once the general partner provides its limited partners with their preferred return, if any, it then typically enters a catch-up period in which it receives the majority or all of the profits until the agreed upon profit-split, as determined by the carried interest, is reached.

http://www.wrhambrecht.com/ind/private/glossary/


--------------------------------------------------
Note added at 2002-03-11 01:09:41 (GMT)
--------------------------------------------------

Preferred return : The preferred return is a minimum annual internal rate of return sometimes promised to the limited partners before the general partner shares in profits. In effect, the preferred return ensures that the general partner shares in the profits of the partnership only to the extent that the investments perform well. Once the preferred return is met, there is often a catch-up period in which the general partner receives the majority or all of the profits until it reaches the agreed upon profit-split, as determined by the carried interest.

Catch-up : This is a common term of the private equity partnership agreement. Once the general partner provides its limited partners with their preferred return, if any, it then typically enters a catch-up period in which it receives the majority or all of the profits until the agreed upon profit-split, as determined by the carried interest, is reached.

http://www.wrhambrecht.com/ind/private/glossary/
Selected response from:

wrtransco
Local time: 11:45
Grading comment
Excellent! Thank you very much!
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +2preferred returnwrtransco
4 -1preferred dividend
swisstell


  

Answers


17 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
preferred dividend


Explanation:
cannot give you a reference outside of my "common knowledge" but you can probably verify this term by typing my solution into a search engine. Good luck.

swisstell
Italy
Local time: 17:45
Native speaker of: German
PRO pts in pair: 3377

Peer comments on this answer (and responses from the answerer)
disagree  R. A. Stegemann: Preferred dividend is the first class of dividends payed to stocked holders. According to the text the Vorzugsrendite is payed after dividends. Thus, it cannot be preferred dividend.
11 hrs
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31 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
preferred return


Explanation:
The formulas for distribution of returns to equity investors are evolving to meet the requirements of individual projects and market conditions. Under the limited liability company structure, it is becoming common for the managing member (comparable to a general partner) to put the deal together, invest minimal cash, and receive the management contract on the hotel. The other members of the LLC frequently receive a moderate preferred return, often in the 7-10 percent range, with the remaining proceeds being distributed on a percentage basis among the members and managing member. The managing member often receives an additional promotional interest for its development efforts.



--------------------------------------------------
Note added at 2002-03-11 01:05:40 (GMT)
--------------------------------------------------

Preferred return : The preferred return is a minimum annual internal rate of return sometimes promised to the limited partners before the general partner shares in profits. In effect, the preferred return ensures that the general partner shares in the profits of the partnership only to the extent that the investments perform well. Once the preferred return is met, there is often a catch-up period in which the general partner receives the majority or all of the profits until it reaches the agreed upon profit-split, as determined by the carried interest.

Catch-up : This is a common term of the private equity partnership agreement. Once the general partner provides its limited partners with their preferred return, if any, it then typically enters a catch-up period in which it receives the majority or all of the profits until the agreed upon profit-split, as determined by the carried interest, is reached.

http://www.wrhambrecht.com/ind/private/glossary/


--------------------------------------------------
Note added at 2002-03-11 01:09:41 (GMT)
--------------------------------------------------

Preferred return : The preferred return is a minimum annual internal rate of return sometimes promised to the limited partners before the general partner shares in profits. In effect, the preferred return ensures that the general partner shares in the profits of the partnership only to the extent that the investments perform well. Once the preferred return is met, there is often a catch-up period in which the general partner receives the majority or all of the profits until it reaches the agreed upon profit-split, as determined by the carried interest.

Catch-up : This is a common term of the private equity partnership agreement. Once the general partner provides its limited partners with their preferred return, if any, it then typically enters a catch-up period in which it receives the majority or all of the profits until the agreed upon profit-split, as determined by the carried interest, is reached.

http://www.wrhambrecht.com/ind/private/glossary/



    Reference: http://www.pkfonline.com/haainc/whatsnew_reports_view.cfm?re...
wrtransco
Local time: 11:45
Native speaker of: Native in GermanGerman
PRO pts in pair: 236
Grading comment
Excellent! Thank you very much!

Peer comments on this answer (and responses from the answerer)
agree  Michael Sebold: This is it - check the reference to "catch up period" under "preferred return" at this link: http://www.wrhambrecht.com/ind/private/glossary/
27 mins

agree  Chris Rowson: Well if this isn´t convincing I don´t know what would be!
3 hrs
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