As an alternative or extension to Mezzanine Finance, Preferred Equity can provide even higher leverage for development funding, but is quite a different product.  Our Preferred Equity product may require a coupon and/ or a profit share and therefore we will get a little more involved in your project to protect our position.

Preferred Equity can be particularly beneficial for developers looking to significantly reduce their cash contribution to a project while pursuing other opportunities in their pipeline.

Preferred Equity is often a more flexible option, as it usually does not require taking security over the land or a registered mortgage. Preferred Equity is repaid after all secured debt but before any ordinary equity. This product is generally best suited to experienced developers.