Excellent writeup! Especially: higher on the capital stack ≠ safe investment I have spoken to people who are chasing PREF Equity "opportunities" thinking they are "safe". Leyla's writeup, applied properly, probably eliminates most of the deals us LPs are seeing. Also, I wonder if the institutional pref equity firms see the better quality deals vs. an LP such as myself who gets a deal forwarded to their mailbox?
Scariest investments right now are broken operators sourcing $ for OpCo level funds that aren’t collateralized by any single asset.
Excellent writeup! Especially: higher on the capital stack ≠ safe investment I have spoken to people who are chasing PREF Equity "opportunities" thinking they are "safe". Leyla's writeup, applied properly, probably eliminates most of the deals us LPs are seeing. Also, I wonder if the institutional pref equity firms see the better quality deals vs. an LP such as myself who gets a deal forwarded to their mailbox?
There are great pref equity funds (some of them do not work with retail investors)
I’ll do a case study on one one of those to compare
Would love to read this!
Really good breakdown that anyone should be able to understand before they send one dollar to these deals. I think I have six in my inbox right now.