Total cash returned divided by total cash invested over the hold period.
Related terms
- Exit strategy
The planned method and timing for realising value from an investment, usually sale or refinance.
- Fund of funds
A vehicle that invests in a portfolio of other funds rather than directly in assets, giving investors diversification and access at the cost of an extra fee la…
- Fund vintage
The year a fund makes its first investment, used to benchmark its performance against other funds that began deploying in the same market conditions.
- General partner (GP)
The sponsor entity that manages a fund or deal, makes investment decisions, and bears unlimited liability; typically commits a small slice of capital alongside…
- GP catch-up
A waterfall tier after the preferred return where the sponsor receives most or all distributions until its share of total profit reaches the agreed promote per…
- Gross yield
Annual rental income as a percentage of price, before deducting operating costs.
- Ground-up development
Building a project from a bare or cleared site rather than acquiring an existing asset; the highest-risk, highest-return real estate strategy, carrying constru…
- Hold period
The length of time an investor plans to own an asset before selling.