can you please show work and give a reasonable answer.
The language below is taken directly from a partnership agreement for a hotel project. Members" are the members of a limited liability company formed to invest in this hotel. "Manager" is the person who put this deal together. This section deals with how they will make distributions of cash to the parties who are in this investment. geris 105 cutem. thers sulle investo get 720.000 manager yets S30 ATAN 6,05(c) says that after everyone has their investment back, and the 6% base return, then the cash is distributed 65% to members, which would be all investors, and 35% to the manager. This continues until investors have an IRR of 16% on the investment. after the Mors ani. So notice that the manager, who put the deal together, selected the site, designed the hotel and oversaw construction, and manages the property, gets an increasing share of cash as the deal generates a higher IRR. EXPLAIN WHY THIS WOULD BE DONE - WHY WOULD INVESTORS GO FOR THIS?? 6.05 Distributions of Distributable Cash by the Company. Subject to applicable law and any limitations contained elsewhere in this Agreement, the Manager may clect from time to time to distribute Distributable Cash to the Members, which distributions shall be in the following order of priority: @ To n s their unreturned Capital ad Comoros, GSMUSIC (C) Sixty five percent (65%) to the Members in proportion to their Percentage Interests and thirty five percent (35%) to the Manager until a sixteen percent (16%) internal rate of return to the Members is achieved; and thereafter, Data The language below is taken directly from a partnership agreement for a hotel project. Members" are the members of a limited liability company formed to invest in this hotel. "Manager" is the person who put this deal together. This section deals with how they will make distributions of cash to the parties who are in this investment. geris 105 cutem. thers sulle investo get 720.000 manager yets S30 ATAN 6,05(c) says that after everyone has their investment back, and the 6% base return, then the cash is distributed 65% to members, which would be all investors, and 35% to the manager. This continues until investors have an IRR of 16% on the investment. after the Mors ani. So notice that the manager, who put the deal together, selected the site, designed the hotel and oversaw construction, and manages the property, gets an increasing share of cash as the deal generates a higher IRR. EXPLAIN WHY THIS WOULD BE DONE - WHY WOULD INVESTORS GO FOR THIS?? 6.05 Distributions of Distributable Cash by the Company. Subject to applicable law and any limitations contained elsewhere in this Agreement, the Manager may clect from time to time to distribute Distributable Cash to the Members, which distributions shall be in the following order of priority: @ To n s their unreturned Capital ad Comoros, GSMUSIC (C) Sixty five percent (65%) to the Members in proportion to their Percentage Interests and thirty five percent (35%) to the Manager until a sixteen percent (16%) internal rate of return to the Members is achieved; and thereafter, Data
