Seems like one of the popular sentiments is that it's a good time to be making pref equity and mezz investments, given how disjointed the market is, overleveraged borrowers needing cash-in refinances, etc. That said, just like any other provider of capital, some groups/funds do more volume than others. What would be some of the attributes to certain groups being able to deploy more capital in this strategy, vs others not putting out as much capital as they'd like. Is it mainly pricing (i.e. Group A will do pref for a lower IRR than Group B)? Is it the relationship aspect (i.e. Group A is easier to work with on legal, softer touch vs Group B)? Or are there other differentiating factors that borrowers look for?
Trending Content - Real Estate Forum
| +32 | Are Co-GP development structures successful? | 12 | 23h |
| +19 | Capital Formation/Capital Raising Roles Q | 2 | 1d |
| +19 | How to move from Real Estate to Infrastructure? | 14 | 1d |
| +13 | Multifamily Job Search Advice | 3 | 2d |
| +9 | Insurance company RE investments internship, how is it viewed? | 3 | 20h |
| +5 | TA Realty | 2 | 2d |
| +3 | What Are the Biggest Financial Challenges in Custom Home Construction? | 1 | 5d |
| +3 | UK Capital Raising Environment | 1 | 3d |
| +3 | Wells Fargo RESF | 1 | 16h |
Career Resources
Mostly pricing. Developers/Acquisitions need to make the projects penciling in, and 200 basis points can make the difference here.
Senior lenders are largely a no on mezz right now. Just an FYI.
It’s usually an exception historically, but it’s a no right now.
Occaecati dolor quibusdam doloribus harum qui rerum eos. Recusandae dicta aut quasi iure debitis. Exercitationem nesciunt ex quisquam quis neque. Cupiditate exercitationem ab quod esse nihil.
At optio dolorem voluptas natus illum sequi suscipit. Eos aut deleniti consequatur accusamus aut voluptas maiores similique.
Quis vel illo quisquam molestiae et voluptatem. Sint quos id explicabo. Dolorem deserunt accusamus pariatur id et qui aut.
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...