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!
current coupon rates on preferred equity
by a searcher from University of Illinois at Urbana-Champaign
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