Real Estate 101
September 11, 2023
3 min read
Preferred Equity: The Appeal for Real Estate Investors
In real estate financing, one piece of the capital stack is currently quite...
At its core, preferred equity is a form of hybrid financing—somewhere between common equity and debt. An investor providing preferred equity capital is generally promised a fixed return before any profits are distributed to other equity holders, but after any debt is serviced. This positioning in the capital stack—above common equity holders and below lenders—provides an attractive risk-reward balance.