we are over 100x P/E ratio on the Mag 7. 

There is no residual value to a dried up drill site.Your point to asking how a fund of funds is being compensated should be taken in all industries: real estate, O&G, PE, hedge funds, VC, etc. 

Fair warning: low LTV ratio, because it has to be a non-recourse loan and stirct rules and extra paperwork.Maybe a great idea/time to do that, considering PE ratios on the stock market.

As a PE firm you have a 3 to 5 year horizon.  

The business was owned by a sole proprietor, but the doctor sold it to a PE firm. 

Or better yet a 300+ PE..... 

At least around here, family office, mezzanine style investors, and smaller PE shops in the hospitality space, would be good candidates for this type of investment.

H-Y-P-E-R---L-O-C-A-L

There are different approaches to this: you could go to work for a large PE firm starting at their entry-level rung on the ladder and working your way up. 

We are about 82% full, use google ads, have a large bill board, plus our Vortex of community renters has picked up and we add renters organically.This is really the story of a PE firm buying into an industry.