Preferred Equity to Fund Projects With Less Cash Equity

Preferred equity sits above your ordinary equity and behind the debt. It lets you fund a project with less of your own cash, in return for a defined preferred return to the capital partner, ahead of your residual profit.

Why developers use preferred equity

• Reduce the cash equity committed to a single project.
• Run more projects at once with the same equity base.
• Partner with capital that backs the deal, not just the rate.
• Keep control while sharing a defined return on the upside.