Liquidation
and Exit Strategies
Investor liquidation and exit strategies are agreed upon in the initial shareholders agreement. In the event of unusual circumstances relating to the project or investor requirements, a delayed or premature liquidation can be accommodated via a share buyback guarantee from KDH at a mutually agreed rate of return. This rate will be related to the maturity of the investment in relation to the original agreed time frame.
KDH offers two investment options based on our preferred investor requirements. The Internal Rate of Return will typically vary between 22% and 30% or higher. It is clearly illustrated in the graphic below that the period of time being invested is directly proportional to the Rate of Return achievable. The relationship is however not linear but tends to be exponential:
Construction Projects Liquidation and Exit Strategies
The typical time frame for construction projects is 24 months and a final lump sum payment will usually be made at the final completion date of the project. In some cases where the commencement of construction is phased in over a couple of months we will generally make the same type of staggered payments as the deferent phases of a project is completed.
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