If a sponsor is assumed to have investment hurdle rates in a range of 20-25% per annum

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If a sponsor is assumed to have investment hurdle rates in a range of 20-25% per annum while commercial bank loans yield 300-500 basis points over London Interbank Offer Rate (LIBOR), what would you assume to be a target return for a subordinated loan made by a collective investment fund? Government fund? In what way would the loan structure be different?

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