Strategic Investment Approach

At Madison Private Equity, we are committed to delivering competitive project returns to our valued investors. We hold ourselves to high standards and aim to provide returns that meet the low to medium risk associated with each project.

To achieve this, we employ a strategic approach that revolves around three key financial strategies: Capitalization Rate Spreads, Income Appreciation, and Debt Conversion Strategies. These strategies comprise the foundation of our investment criteria.

One of the pillars of our investment criteria is the utilization of Capitalization Rate Spreads. We carefully select and manage properties with a focus on the spread between the Project Capitalization Rate and the Market Capitalization Rate. By optimizing this spread, we enhance the potential for increased cash flow and greater returns for our investors. This strategy allows us to create a more secure and profitable investment environment, leading to improved financial performance.

Income Appreciation is another critical element of our investment approach. We actively seek out opportunities to enhance the income generated from our properties. This includes strategies such as rental rate increases, cost control, and property amenities that boost rental income. Through this approach, we aim to provide investors with a consistent and growing stream of income, resulting in more reliable returns on their investments.

Our investment criteria also employ Debt Conversion Strategies, which involve the effective management of debt associated with our properties. By strategically addressing debt, we seek to minimize risks and maximize the financial performance of our investments. This strategy is designed to improve the overall returns for our investors and provide them with a more secure and prosperous investment experience.

Projected Returns

By applying these financial strategies, we forecast that simple cash-on-cash returns for our investors will
typically fall within the range of 6% to 8%.

However, when considering an allowed holding period and the synergy created by our strategies, the overall returns for our investors are projected to be even more impressive, typically ranging from 18% to 22%.