Gents, in my experience its pretty close to market. Especially when private investors become involved.
Firstly, it all comes down to risk free rate of return. Why would you bother taking the 'risk' for single digit return when banks will give you almost 8.5% on term deposit?
Secondly correct, market will give you 12-15% long-term. Very well diversified, + divies. Nice hold and forget strategy, totally outsourced.
So I ask you, what sort of return would you be looking for to place YOUR money in a generally 'illiquid' investment which carries all the business risk that being in this type of business requires (or any business for that matter).
I will tell you now. 25%-30% would be standard.
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