Preferred Equity Structures/Model

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May 30, 2023

by a searcher from Louisiana State University - E. J. Ourso College of Business in Houston, TX, USA

Does anyone have examples of preferred equity structures and/or model? Trying to better understand how they work and what to assume if you wanted to redeem the preferred equity after a couple of years.

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Reply by a searcher
from New York University in Nashville, TN, USA
If it isn't paid out, it compounds.
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Reply by a searcher
from Northwestern University in New York, NY, USA
Thanks for the tag ^redacted‌. These instruments are endlessly flexible and customizable, so I'm not sure you will find much value in examining other searchers' deal structures (other than just seeing what's out there). The 'market' tends to gravitate to certain return hurdles and governance provisions which are easily found by talking to investors, but the mechanics of your capital structure always solve for a unique deal situation/problem. I would suggest you define what you need your capital structure to do for you and then negotiate with your investors around that need.
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