Michael Woolhouse

In my experience, I've seen sell volume as high as 99 or 100%.

So literally every single LP decides to sell.

That's one end.

On the other end of the spectrum, I've seen that number as low as 50%.

In other words, 50% want to take the money and run and 50% want to continue.

So I think the market average today in that 15 to 20% range is about what I would expect going forward.

I think the demand for DPI today is perhaps at a cyclical high.

which is perhaps driving that percentage down.

Maybe it goes up a little bit more over time, but generally speaking, at least in my experience, when LP has the opportunity, these are successful deals.

Remember to take five times the money off the table.

They're usually very happy and say, thank you very much.

It's a little extra work.

No question about that.

And that is an additional burden on LPs.

And some of them are not necessarily set up to make the decision or have the ability to roll into the continuation vehicle.

but it's kind of in high class problem territory for me.

Five times the money, how bad is it?

Actually, that's probably a little flippant, but what we have found is in general, when LPs receive the opportunity to successfully realize a very high multiple of money on the deal, all else equal, they're actually quite happy to take it.

this is a market that investors, so let me talk about that more from our perspective, because this is underpinned by what the sponsors believe and then what we choose to underwrite.

This is a market that ought to deliver two times the money net or better and a 20% IRR