current coupon rates on preferred equity

by a searcher from University of Illinois at Urbana-Champaign

1 year ago

I'm looking to informally benchmark current fair market value (FMV) for coupon rates for preferred equity from arms-length investors in search fund and independent sponsor deals.  I'm aware of the 7-10% range that is customarily discussed.  Logically, our current higher interest rate environment would push up coupons, since they are lower preference than debt. 

To be clear, I'm not looking to support an argument for holding down the rate.  I'm just seeking current experience in arm-lengths deals to infer something re: FMV.   Thanks for your help!

2 likes
192 views
5 comments

searcher from Technische Universität München

Id also agree with Thomas. Low coupons are still possible in suitable conditions.

11 months ago | like reply | 0 likes

searcher from Northwestern University - Kellogg School of Management

Any updated views on where Pref Equity coupon rates are shaking out in March / April 2024?

11 months ago | like reply | 0 likes

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