Anticipated returns will depend on the risk profile of each transaction and the terms of the offering. In order to consider an investment for the platform, the forecasted returns must fall within our target ranges, which vary by investment structure. These targets are:
- Debt: 7-12% annual rate of return;
- Preferred equity: 6-12% current preferred return, 10-18% total preferred return;
- Common equity: Please log in to view target returns and risk disclosures pertaining to specific investment opportunities.
- Funds: Depends on the fund strategy (core, core-plus, value-add, optimistic, distressed). We typically seek to source fund investments that offer predictable, near-term cash flow.
All annual rates of return and preferred returns presented on the platform are net of all fees. While we model returns conservatively, and do extensive underwriting on each offering before putting it on the platform, it’s important to note that all investments carry risk. Be sure to review the specific set of risk factors for each offering you consider.
Investor Packet – Offering Summary Page – Pro Forma
Disclosure: Actual returns will vary and there can be no assurance that an investment’s actual performance will lead to the targeted results or perform in any predictable manner. Past performance is no guarantee of future results, and any target may not reflect actual performance.
What is the difference between a current return and accrued return?
Preferred equity investments often feature both a current and accrued return. While current returns are expected to be paid monthly from the onset of the investment, accrued returns accumulate over time and are paid at exit. Please see this glossary article for further information about accrued interest.
I don’t see any return projections. Where can I find out more?
The details of each offering’s structure can be found on the offering page for that deal, as well as in the Offering Listing Summary, which is at the beginning of the Investor Packet, found via the “Documents” button at the top of each offering page. In the case of a common equity investment, details of how profits are split between investors, the project Sponsor, and EquityMultiple can also be found in this documentation.