Investor returns after refinance

[Jonathan Kranzler]

I am raising money for a fairly large project and looking to structure payouts with investors. It is mostly buy and hold with a little work to be done. We agreed on a preferred return of 7% and a revenue share between me (GP) and the LP's of everything on top. In terms of a refinance, If I return capital back to investors should it reduce their equity and/or preferred return in the deal?

All advice for help. Thank you.

[Jonathan Kranzler]

Thank you all for the advice. @Andrew Johnson: I wouldn't want to necessarily own it outright but wondering how to re-structure the payments once investor (LPs) money has been returned. I figure if capital has been returned then maybe it would eliminate the initial hurdle preferred return on capital invested and skip directly to GP-LP split. Just trying to think of a fair arrangement.