Project finance schedules · in 1 model
Project and equity returns
Gearing, project IRR, equity IRR and multiple.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: project and equity returns.Updated 30 September 2026
What it does
The two returns that matter and the funding that separates them. The project IRR is earned by the asset before financing; the equity IRR is what the sponsor actually receives after debt service, the reserves and the lock-up have taken their turn. Gearing is the bridge between them, and because the debt was sized to coverage it is an output of the sculpt, not an input.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
Project finance model
- Returns, rows 6–7: Project cash flow (unlevered): CFADS less construction cost, Equity cash flow: distributions less equity funded
- Returns, rows 10–13: Total project cost (capex, interest during construction, fees, reserve), Senior debt, Sponsor equity, Gearing: debt over total cost
- Returns, rows 16–20: Project IRR per half-year, Project IRR, annualised, Equity IRR per half-year, Equity IRR, annualised…
What a reviewer looks for
- An IRR on semi-annual flows quoted as if it were annual.
- Equity cash flows that count trapped cash.
- Gearing set as an input and the debt forced to fit it.