The Equity Waterfall for a Syndicator

I just wrote an article about my preferred structure for structuring the equity financing with senior equity, preferred equity, and common equity.

A syndicator that raises private equity may consider an equity waterfall that is similar to a combination of debt and equity. Treat the senior equity like a 1st lien and the preferred equity like a 2nd lien, with a debt-like structure with a fixed annual rate, amortization term, and rolled-in points. An amortization schedule shows…

You can read the article by clicking here.

About Jeffrey Smith

Real estate investor and syndicator.
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