Joint Venture

Joint Venture — A joint venture (JV) lets two or more investors collaborate on a deal without forming a permanent business together. One partner might bring the capital while the other contributes the sourcing relationships, due diligence skills, or servicing oversight needed to work the asset through to resolution. The JV agreement spells out each party's contribution, responsibilities, profit split, and exit terms.

JVs are popular among note investors who want to scale beyond what their own capital allows or who lack specific expertise for a particular asset type. Unlike a full fund structure, a JV is typically scoped to a single deal or a small batch of notes, making it simpler to set up and dissolve. Because the arrangement is project-specific, each party can evaluate new opportunities independently and choose whether to partner again on future deals.