Methodology / Glossary / Equity

Equity

The developer's own funds invested in the project — the difference between total costs and total debt. Equity bears the highest risk because it is repaid last, after all debt obligations are met.

Why it matters

Equity is the developer's skin in the game. Less equity amplifies returns but also amplifies losses.

In Profivo

Calculated automatically as Total Costs (excluding finance) minus Total Debt. Finance costs already sit on the debt side of the model, so they are not double-counted in the equity figure. Shown in the capital structure breakdown.

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