Glossary of Terms

Joint Venture 2019-09-21 08:00:00

Joint Venture

A joint venture is an arrangement between two or more entity pool resources to accomplish a particular task in a business setting. Entities in the joint venture enjoy profits and are responsible for losses, but the entity is separate from other personal or business interests.

Joint ventures are commonly formed when two businesses want to partner to enter an unfamiliar market. In real estate, a REIT specializing in multifamily development may for a joint venture with an office developer for the purpose of obtaining exposure to the office real estate market.