← Glossary

Peak equity

Peak equity is the largest amount of developer equity committed to the project at any point in time — usually after acquisition and during construction, before debt drawdowns offset it.

Formula

Peak equity = max(cumulative equity contributed over project life)

Read straight off the monthly cashflow.

Why it matters

Peak equity is the answer to 'how much capital does this project actually need from me?' It is almost always more than the headline equity contribution because of timing — equity is drawn first, debt later. Equity IRR is calculated against the full equity drawn, including peaks.

Worked example

If the Waterloo scheme is funded with $5M of developer equity drawn first (acquisition, deposits, early works) and a $17M senior facility drawn later, peak equity sits around $5.2M in early months 7–9, before construction draws meaningfully reduce the balance.

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