An IRR will be used for any of the combined Bond plus Equity offers on the Downing Bond platform.

Because it is not possible to separate the bonds and the shares (the debt and the equity) i.e. participate in one but not the other, the returns are best estimated using an IRR.

The interest earned by investing in the bond is fixed, but the performance of the equity isn’t, so the IRR is used to represent the potential value of the combination on exit (normally a sale of the asset) making a number of assumptions about the timing of an exit and the valuation. It is used for illustration purposes only and should not be relied upon.