Investor · Salisbury, NC · Member since 2014 · 314 posts · 386 votes
9y
@Lane Kawaoka Most deals are estimated at 5 years and that is the expected IRR for that period. However, it could be shorter or longer depending on market conditions. I just got paid on an "5 year" MF deal with MLG that had a 15% projected IRR on a 5 year hold. They sold it in under 2 years for a 30% IRR over 2 years. The payout was about 1.6x. I've had one year deals take two years and I suspect some of the 5 years deals may go out 8+.
Each deal is different and the PPM and offering information will spell out the expected duration. However, its a illiquid investment ,so don't invest if you have to have it back in x years.... timing is not guaranteed.
Investor · Salisbury, NC · Member since 2014 · 314 posts · 386 votes
9y
I just pulled up the projected IRR's from the 14 equity deals I invested in 2016, and the range does vary widely from project to project: Average is 22.5%, median is 20%.