Red Flags to Look Out for in Private Placement PPMs and Regulation D Due Diligence

Key Takeaways Private placements PPM red flags are warning signs in a private placement memorandum that may indicate legal, financial, or operational risk. They include unclear use of proceeds, weak disclosure of conflicts, missing audited financials, and vague exit plans. Investors often check adviser history, capitalization tables, and fee structures. Spotting these issues helps assess […]

Interval Funds vs REITs: Structures, Risks, and Investment Takeaways

Key Takeaways Interval funds vs REITs are two ways to invest in real estate and income assets. Interval funds provide occasional liquidity and professionally managed diversification. REITs are exchange-traded or private and concentrate on property income and appreciation. Both have fee variations, tax treatments and liquidity characteristics that investors care about. The feature article contrasts […]

Private Credit for Income: What Investors Should Know

Key Takeaways Income-oriented private credit funds are investment pools that provide loans to businesses and seek to return income on a regular basis. They typically provide greater yields than public bonds and concentrate on middle-market loans, direct lending, and structured credit. Pension funds and wealth managers are among the investors looking for stable cash flow […]

Preferred Equity vs Mezzanine Debt: Risks, Returns, and When to Choose

Key Takeaways Actionable next steps evaluate project needs, compare cost and control impact, consult legal and tax counsel, and use a decision matrix to match the appropriate instrument to goals, whether maximizing leverage, preserving ownership, or balancing risk and return. Preferred equity vs mezzanine debt are two hybrid finance options used in real estate and […]

Sponsor Due Diligence Checklist and Best Practices Guide

Key Takeaways A sponsor due diligence checklist is a checklist of checks to evaluate a potential sponsor’s finances, track record, and compliance. It includes financial statements, legal history, ownership, insurance, and conflict of interest checks. Good checklists establish dates, designate reviewers, and add risk scores to each item. Transparent documentation and established thresholds accelerate decision […]

Cap Rate vs. Interest Rate Spread What Investors Need to Know

Key Takeaways Cap rate vs interest rate spread compares a property’s net income yield to the gap between borrowing costs and investment returns. Cap rate indicates anticipated return on property value derived from net operating income. Interest rate spread measures the margin between loan rates and yields related to the asset. Both direct buy, hold, […]

IRR vs Equity Multiple: Explained with Calculation, Cash Flow Consistency, and Tax Considerations

Key Takeaways Match your metric to your strategy and psychology — choose IRR if your goals are time-sensitive or efficiency-oriented, and equity multiple for insight into total cash returned and capital preservation. IRR vs equity multiple explained: IRR is the annual rate of return that shows how fast an investment grows. Equity multiple shows total […]