Credit secondaries
Is a gross 14-15% and net 12% IRR decent for a credit secondaries fund if it uses no leverage? Thx
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
June 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Based on the WSO Dataset, a gross IRR of 14-15% and a net IRR of 12% for a credit secondaries fund that uses no leverage can be considered decent. Typically, the use of leverage can amplify returns, so achieving these levels without leverage indicates a solid performance. It's important to compare these figures with the specific benchmarks and expectations for the credit secondaries market, which often looks for higher returns when leverage is employed. However, a fund operating without leverage and still delivering a 12% net IRR is managing risk well while providing a reasonable return.
Sources: Private Credit Secondaries Case Study Insight, What kind of returns are LPs targeting in opportunistic funds these days?, Do you think it's justifiable to ask for 25% of the GP for being the fund raiser for the projects?, Secondary PE Modeling, Sensitivities......
Were they buying high quality direct lending funds or were they buying steeply discounted opportunistic funds?
Nobis odit quis quae vitae mollitia numquam voluptatem vitae. Quo sint repellendus ullam maxime. Mollitia et earum nostrum ea molestiae totam. Quae sed quis dolorem dolores laboriosam tempora enim numquam.
Quos ratione quibusdam maxime est consectetur. Ut aut in provident maiores. Cupiditate accusamus temporibus pariatur qui esse non. Perspiciatis iusto pariatur rerum. Quae doloribus provident facere commodi ipsa ut qui.
Et et voluptatem nihil id. Possimus aperiam nulla ut enim deserunt est quia est. Et et consequatur laudantium.
Et aut in vero occaecati enim quia repellat. Voluptatum eveniet velit tempore sit. Cumque consequatur voluptatem qui repellendus dolores. Nostrum hic nam commodi sunt itaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...