Real estate debt
Mezzanine, preferred equity and co-investment
When senior debt does not cover the transaction, we complete the structure to reduce your own equity.
When it makes sense
When the bank or the senior fund finances only part of the cost and the developer does not want to, or cannot, put in the rest. More leverage costs more, but it frees capital for other transactions and can improve the return on equity.
Structures
Mezzanine debt subordinated to the senior tranche. Preferred equity, with a return that ranks ahead of the developer's. Co-investment with funds or family offices that come in as partners in the project.
Frequently asked questions
What is the difference between mezzanine and preferred equity?
Mezzanine is debt, subordinated to the senior tranche and normally secured on its own. Preferred equity is equity with a priority return: it is not a loan, but it is paid before the developer.
How much of my own equity do I need?
With a senior plus mezzanine or preferred structure, the developer's contribution can come down significantly. It depends on the project and on the developer's track record.
Is it more expensive than senior debt?
Yes, because it takes more risk. That is why the total cost of the structure should be compared with the return its capital earns.
Contact
Tell us about your transaction
We review your case confidentially and reply within 48 hours at the latest.