What return do investors expect?

by a searcher

2 years ago

Hey all,

I am in the process of compiling marketing information with the aim of pitching investors once completed.

I'd like to understand where to find information regarding expected ROIs and deal structures relating to investors. What do junior capital equity partners expect as a return?

Any help in this area would be much appreciated.

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3 comments

searcher

Also depends on how you structure the fund. Doesn’t have to be IRR based. Could be MOIC if a longer hold is expected

2 years ago | like reply | 0 likes

searcher from University of Texas at Austin

Definitely depends on the size of the business you are targeting, but consider 20% to be basement expectation and 25-30% to be more interesting. This will also depend on the class of investor. Drs. and Lawyers who don't typically work with HF's or as LPs in PE deals will be excited by 20%+ (their options are public equities or RE deals).

2 years ago | like reply | 0 likes

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