How to compensate personal guarantor in a syndication transaction

[Connie Dai]

Would like to learn how a personal guarantor is compensated for taking the risk. Sponsor just purchased a land to build an apartment. Sponsor is in the process of set up an LLC with multiple members put in equity money and LLC to borrow a loan. Lender of course requires a personal guarantor. One shareholder of Sponsor and who also takes about 30% membership interest in LLC will be the personal guarantor. Does he usually receive compensation for his taking this risk to be the personal guarantor - such as, he gets more equity interest than the percentage of his investment, or a percentage of distribution being carved out to this person?