Pref. Vs JV Equity
Can someone please explain the difference between pref and Jv equity to me? I hear it tossed around a lot, I understand what pref is but don’t really get JV equity and why anyone would be willing to do it in this market.
Pref equity usually is a smaller investment, has capped upside, and has no say in the project. Standard JV gets more money out the door, has unlimited upside, and is a true partner in a deal.
Pref also gets paid first once senior loan is paid vs. JV Equity which goes pari passu after senior loan (and mezz / pref if you have it) get pid off
Pref is basically credit guys larping as equity guys
Quo et modi quibusdam voluptatem. Rerum repudiandae minima laudantium. Cum corrupti vel perspiciatis quaerat sed aut quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...