2024 Pepperdine report is now available

BVWireIssue #261-3
June 19, 2024

cost of capital
cost of capital, pepperdine private capital markets study, risk analysis, industry analysis

The 2024 edition of Pepperdine’s annual survey of expected rates of return with respect to private companies is now available (for free, thanks to continued financial support). The survey report says that the “findings indicate that the cost of capital for privately held businesses varies significantly by capital type, size, and risk assumed.”

Latest ranges: Bank loans have the lowest average expected returns (a median return of 6.8% to 9.0%, depending on loan size), while capital obtained from venture capital has the highest expected returns (ranging from a median of 23% for expansion financing to 51.5% for preseed money). The full report contains details on each type of funding and at various levels as well as a great deal more useful information.

Survey respondents include senior lenders, asset-based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately held businesses, investment bankers, business brokers, limited partners, and business appraisers.

To download the 144-page “2024 Private Capital Markets Report,” click here.

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