Preferred Equity & Mezzanine
Fill the capital gap with cost, control, and senior-loan constraints clear.
Preferred equity and mezzanine can add proceeds when senior debt will not cover the full need. The right answer depends on cost, rights, the senior loan, and your long-term plan.
We help you compare structured-capital options before you commit to a capital-stack solution.
When Preferred Equity Makes Sense
This capital can be useful when senior proceeds are constrained, common-equity control matters, or a recapitalization is needed without a full senior refinance. The blended cost should be compared with the alternatives.
Some senior lenders will not allow mezzanine or preferred equity behind their loans. Surface that constraint before commitments are signed.
Typical Deal Parameters
| Tranche Size | $3M to $50M+ |
| Position | Above senior debt, below common equity |
| Rate | 10–16% (current pay or accruing) |
| Structure | Mezzanine loan or preferred equity interest |
| Maturity | Co-terminus with senior debt (typical) |
| LTV Range | Senior 55–70% + mezz/pref to 80–85% combined |
Need to close a capital-stack gap? Review the senior-loan constraints, cost of capital, and control implications before adding subordinate capital.