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"Interest rates are generally so low that lenders are focused on how they can improve yields, and construction lending usually has higher yields, so it is a way to improve their return on funds deployed," said Andrew A. Lance, a partner at the law firm Gibson, Dunn & Crutcher.
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With spending gobbling so much of the spoils, the closely watched measure of return on capital deployed is under pressure.
This will advance our field more rapidly and yield a higher return on funding investment.
But we also offer an excellent return on public funding.
Abraham: The 65% internal rate of return on our fund.
The one-year return on a Vanguard Selected Value fund in 2006 was 19.1%; the return was 15.1% on a Fidelity Value Fund.
Because developers draw on construction loans as building progresses, they are not recorded until the funds are deployed, so the increase in commitments is anecdotal.
The scepticism about returns on these funds has evaporated as investors have witnessed increasingly fruitful returns".
But returns on such funds depend on the skills of their managers.
"To date, returns on distressed funds in Europe have been disappointing".
Returns on big funds have always disappointed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com