Private RE Funds are available in the marketplace to provide equity to construction and development projects. Different types of private lending/equity funds have different levels of risk tolerance, different levels of return requirement, different time horizons, and different tax considerations in structuring the investments.
When considering equity investments, private funds are prepared to take a high level of risk in return of high returns. Current target returns for private RE funds are based on time horizons. Mid-20’ s can be expected for up to 18 months and mid-30’s for those based up to 24 months.
The challenge for a developer seeking a private equity fund is to choose a compatible equity partner from the available alternatives. A compatible partner is one that has hurdles that can be realistically achieved, and time horizons that can match those of the developer, and a partner with experience in projects who understands well the process of construction and development projects.
At Capital Insiders we offer investors the opportunity to invest in both; a Private Lending Fund offering capital preservation, current income, risk-adjusted returns, and an Private Equity Fund offering both, a preferred return and high-yield returns.