Explore the world of Real Estate Investing in our latest episode! Is your private equity debt investment too leveraged? Join us as Ben Fraser, Chief Investment Officer at Aspen Funds, shares insights into the importance of absolute leverage in Real Estate Investing. Discover strategies to manage risk and maximize returns in this episode of Tech Careers and Money Talk. Learn more about capping leverage for success. Listen now!
Is your private equity debt investment too leveraged?
Leverage is the use of borrowed money to finance an investment.
It can be a powerful tool for increasing returns, but it also comes with increased risk.
In the latest episode of Tech Careers and Money Talk, Ben Fraser, Chief Investment Officer at Aspen Funds, shares critical insights into the importance of absolute leverage and how it can impact your investment success.
Here are Ben’s recommendations:
💡It is best to cap out at 70%, with the optimal sweet spot being closer to 50%. This gives investors a margin of safety in case the value of the asset declines.
💡 Be conservative when calculating the value of the asset. Use conservative cap rates when calculating the value of an asset for the purpose of a private equity debt investment.
To learn more about evaluating private equity debt investments and how to manage leverage, listen to this episode of Tech Careers and Money Talk!
https://www.techcareersandmoneytalk.com/private-equity-secrets
