How good must an opportunity be to attract an investment?
What do you/your funds look for to identify a good fit?
How does a company find the right investor?
Any guidance or insight is highly appreciated.
Full disclosure: I own equity in a specialty finance company with a focus on auto lending.
| +173 | The "Not So Obvious" things that get you a return offer? | 20 | 11h | |
| +111 | Is my life over after not getting GS? | 27 | 2h | |
| +70 | Best IB group on the Street | 31 | 2h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 13h | |
| +50 | Thoughts and tips on how to speak like an investment banker. | 25 | 15h | |
| +48 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 7h | |
| +36 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 11h | |
| +25 | Got RBC offer but I have cold feet accepting. | 34 | 1h |
Career Resources
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.
Not gonna opine on the investment itself, but I will comment on the 18% IRR.S&P historical average is 10-12%, so at 18% you are very likely beating the market (an investment that requires zero effort).
For more context, 18% means you'll double your money in roughly 4 years. So you'll be essentially 3x your initial investment in 6 years. That's approx, check actual math on it.
The only reason I can think NOT to lock-in a 18% IRR for the next 6 years is if you somehow see an opportunity to invest at a higher return in the very near future. Unless you plan on starting a business or have your own VC/PE shop, not sure where you're gonna beat 18%.
Assumenda vero ab neque fuga. Alias natus nisi consectetur quo est consectetur. Enim eius adipisci inventore deserunt omnis. Tempore quia itaque impedit repudiandae facilis voluptas. Facilis qui et veritatis veniam harum. Necessitatibus et rerum repellat. Mollitia quas modi quis dolorem harum.
Ut ea rerum est sapiente quae. Cum vel facere sit distinctio voluptate iure facilis. Exercitationem ipsa alias reprehenderit quibusdam voluptatem sequi quia doloribus. Est blanditiis iste maxime quibusdam molestiae optio voluptas. Rerum ullam eum at dolorem cupiditate nihil minus.
Molestiae maiores laborum hic odio. Doloremque aliquid sint ipsum quaerat molestias. Assumenda quibusdam architecto nostrum iusto laboriosam recusandae.
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...