This chapter discusses the relevant factors affecting the magnitude of the discount for lack of marketability for minority interests. The empirical data suggest that the primary drivers of the magnitude of the discount for lack of marketability for minority interests are as size of distributions (dividends, withdrawals); prospects for liquidity (probable length of holding period); pool of potential buyers (also affecting prospects for liquidity); risk factors affecting the investors' required rate of return during the holding period, i.e., the discount rate; and growth prospects (affecting the eventual potential sale price, i.e., terminal value). For guidance on the size of discounts relative to various levels of distributions, the analyst must turn to studies, such as the Partnership Re‐Sale Discount Study. Most of these studies relate to discounts from net asset value. An extremely important factor driving the magnitude of the discount for lack of marketability is the prospect for liquidity within a known time frame. The shorter the expected holding period and the more certain the prospective transaction, the lower the discount. This factor is widely demonstrated by the empirical data. Closely related to the prospects of liquidity for the entity is the pool of potential buyers for the block itself. As would be expected, the larger the pool of potential buyers, the lower the discount for lack of marketability, and vice versa.