LP Investors after Refi

[Account Closed]

Short and simple question. Once the mortgage is refinanced and the LP's invest is returned with profit share, why do GP's leave them in the deal?  Do they still get preferred returns or only a profit split?

[Taylor L.]

There's no hard and fast rule that your refi event must not cash out investors. However, most investors expect to remain in the deal on refi. It's a kind of market equilibrium we've reached.