TARGET RETURN
DISCIPLINE
Our objective is to deliver attractive risk-adjusted returns through disciplined underwriting rather than leverage-driven speculation.
Core / Core-Plus Hospitality & Income Assets
- Target Net Yield (Stabilized): ~6.5% – 8.5%
- Target Gross IRR: ~10% – 13%
- Focus: Capital preservation, stable cash flow, inflation protection
Value-Add & Repositioning Strategies
- Target Net Yield (Post-Repositioning): ~8% – 11%
- Target Gross IRR: ~13% – 18%
- Focus: Asset enhancement, operational uplift, multiple arbitrage
Development, Forward Funding & Special Situations
- Target Exit Yield / Yield-on-Cost: ~12% – 15%+
- Target Gross IRR: ~17% – 28%+
- Focus: Complexity premium, structural inefficiencies, timing advantage
Return expectations are assessed net of realistic operating assumptions and incorporate downside sensitivity scenarios.
Return Profile &
Performance Framework
The following return parameters are indicative, non-binding, and subject to asset-specific risk, market conditions, capital structure, and execution. Past performance is not indicative of future results.
Our Investment Lens
Onyx Tree Capital focuses on hospitality and land-backed real estate strategies where complexity creates opportunity:
-Hotel acquisitions and repositioning
-Development and forward-funded structures
-Land banking with defined planning or zoning catalysts
-Real estate special situations and mispriced assets
We favor jurisdictions with strong tourism fundamentals, institutional liquidity, and clear legal frameworks—primarily across Southern and Core Europe.
Risk Management &
Governance
Every opportunity is subjected to a structured internal review process, including:
● Conservative base-case underwriting
● Stress-tested downside scenarios
● Sensitivity analysis on exit pricing, costs, and timing
● Legal, zoning, and operational due diligence
● Clear definition of exit routes and liquidity options
We believe discipline in underwriting is the single greatest predictor of long-term performance.
GEOPRAPHIC FOCUS
Every opportunity is subjected to a rigorous internal screening process, ensuring strategic fit, capital protection, and compelling return potential.
