FAQ

Q. Are there size constraints for Ironwood projects?

A. Generally not, but smaller transactions may not receive priority if larger transactions are already in process. Ironwood transactions to date have ranged in size from $10 million to more than $100 million in total project cost. Ironwood has some institutional investors that prefer transactions greater than $20 million along with key alliances with some very large funds that allows the organization to consider transactions from $100 million up to $1 billion, if the transaction is financially viable. Additionally, Iron Bridge has a group of high net worth individuals who favor investments up to $10 million. This diversity of an investment pool allows us the flexibility to work on projects with both excellent return potential and those that interest the team creatively.

Q. Does Ironwood have a dedicated fund?

A. To date, Ironwood has elected not to raise a dedicated fund and has funded transactions from its investor base on a transaction-by-transaction basis. This format allows Ironwood to remain nimble and flexible and prevents a situation where there is motivation to close a transaction for reasons other than the appeal of the transaction itself. This format has worked very well thus far. Ironwood may consider raising dedicated capital for specific business units, but will likely avoid the “blind pool” fund model for the foreseeable future.

Q. Are there any transactions that Ironwood will not consider?

A. After purchasing and operating a power plant in Guam, it is difficult to formulate a category of transaction that Ironwood will not consider. Typically the organization prefers opportunistic transactions that have unusually attractive risk/return characteristics. While its commercial real estate equity investments typically target high yields, other types of projects may only produce a return or yield as low as seven or eight percent, but at a certain risk level, such return may be attractive to Ironwood and its more risk-averse investors. Ironwood must determine both the risks and the likely return of a given transaction and determine if it is a good fit for our investor base.

Q. What are the most important factors in determining whether Ironwood will execute a transaction?

A. The most important factors are: 1) the background and experience of the execution team; 2) the attractiveness of the particular transaction; 3) the likelihood the transaction will lead to subsequent transactions of a similar nature with the same team or partners; 4) the transaction structure; 5) the level of co-investment and commitment by team members and stakeholders; 6) whether Ironwood can add material value to the transaction; and 7) the Ironwood bandwidth at the given time.