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Hoots : How does gearing work in an unlisted property fund? I am trying to work out how gearing is calculated on a Fund I am looking at. It has an example that says if the Fund is worth m and gearing is 35% then the 'gross' value - freshhoot.com

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How does gearing work in an unlisted property fund?
I am trying to work out how gearing is calculated on a Fund I am looking at. It has an example that says if the Fund is worth m and gearing is 35% then the 'gross' value of the fund is .38m. However when I calculate it I get a gross value of .5m (I did 35% of m and added this to the m value of the Fund)

Can someone please tell me what I am doing wrong here?

Many thanks


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Rearranging the @mhoran_psprep comment: M / (1 - 35%) = .38M.


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