NetLeaseX Capital Launches Preferred Equity Platform

Midwest investment banking firm NetLeaseX Capital announced that it would launch a preferred equity platform that would match investment funds and developers raise preferred equity from high-net-worth individual and family office investors.

“Preferred equity is raised through a newly-formed entity (like an LLC), which is owned by the Sponsor [fund or developer] and which takes title to real estate. The Sponsor’s interest in the entity can be structured in several alternative ways that have in common the benefit of equity-like returns with a risk profile that is usually only available to debt investors,” the company explains in a white paper.