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Preferred Equity Overview

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Capital. Relationships. Results.

Preferred Equity Overview

An overview of preferred equity for commercial real estate.

Preferred Equity

A strategic layer of capital.

Preferred equity fills the gap between senior debt and common equity and can improve transaction execution for sponsors while providing priority economics for investors.

Priority Position

Senior to common equity and junior to senior debt in the capital stack.

Contractual Economics

Preferred distributions and negotiated protections are defined in the transaction documents.

Potential Participation

Structures may include profit participation or other upside components.