My worst performer paid out last month and I ended up grateful for it.
2019 entry, one position, sat on it for five years while everybody around me was stacking new deals every quarter. The position finally closed at 9.1 percent net IRR, which is below what I wanted going in. But I watched four people I know cycle capital through six or seven deals each in the same window, chasing reinvestment, eating idle periods, paying tax prep on $200 distributions. Their blended numbers are not obviously better than mine, and they spent a lot more time on it. The one that surprised me was the idle drag. One person I know calculated she lost about 2.3 points annually just to cash sitting between notes. That compresses a 10 percent deal to something I would never have accepted upfront. I did nothing and got 9.1. Not exciting. But the gap between that and the active version of this strategy is smaller than I expected it to be.
