I am looking to put $5-10 million of capital to work in MHP investing. I like the sector dynamics and am generally open to a fund structured investment, but think that the 50% carried interest revenue model that has developed among the players in this space is ridiculous…especially for an IRR less than 20%. I pay 10-20% carry on my investments in private equity and get 30%+ post-fee IRR.
Are there any funds out there that offer a more reasonable fee structure? Maybe some of the fund players would be willing to offer a side-car vehicle with scaled economics if I commit to this much capital?
Alternatively, I would be willing to offer very compelling economics including equity earn-in to any experienced owner-operator out there who might have interest in being my operating partner.