How can Stamford Capital help me with preferred equity funding?
Preferred equity shares a similar purpose to mezzanine debt finance. Typically, it is used to fill a gap in your funding, or to give you additional leverage – but where mezzanine is structured as a preferred loan, preferred equity will typically not hold security at the asset level.
Where we see it being used is as unsecured fixed rate capital for development projects. It’s a more flexible option for developers, because it doesn’t involve taking security over the land-owning entity or taking a registered mortgage over the land.
It also means you can release equity from an existing project, or fund a gap in your capital requirements that aren’t being met by senior debt lenders.