Boomerang Capital Partners  
Welcome 02.22.12
  
   
   
Boomerang preferred equity is typically used when the developer doesn’t have all the equity needed to fund the gap between a senior loan and total project costs.
  
 
   
 

Some of the characteristics of our preferred equity financing include:

  • 90% loan-to-cost, preferred equity advance rates (non-recourse)
  • Subordination to conventional debt, senior to developer’s equity
  • Preferred rate of return with an accrual feature until maturity
  • Preferred return plus profit participation to achieve target IRR
  • Targeted IRR/hurdle rate determined on a project-by-project basis
  • Suited for projects where Mezzanine is precluded by senior debt covenants
 
  
 
 		              
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