Preferred Equity

Preferred equity is a type of capital structure in commercial real estate investments, that allows private lenders to be prioritized for repayment from any cash flow or profit earned from a particular investment over common equity investors, lenders, or sponsors. However, preferred equity is subordinate to senior debt institutions such as traditional banks and lending institutions.

In commercial real estate, Preferred equity financing is used when additional funds are needed beyond the financing from senior debt institutions.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.