Preferred Equity Deep Dive + Q&A
Masters of Moments
00:00
Aim for Meaningful Returns
Successful investment requires a clear understanding of the expected returns, with a focus on achieving meaningful multiples over time. Investors should consider the timeline of their return; a high percentage over a short duration may yield insignificant actual earnings. Setting a minimum multiple of 1.6 to 1.8 ensures that investments are not only profitable but also sustainable over a three and a half to four-year period. This strategy helps maintain motivation among stakeholders and aligns financial goals, emphasizing the need to prioritize quality over quantity in deal selection.
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