Preferred Equity

Preferred equity: an alternative to secondaries and debt

While the secondaries market is providing a convenient avenue for limited partners to sell fund stakes and access to liquidity, alternatives such as preferred equity have become welcomed opportunities for LPs looking to preserve portfolio upside, explains Pierre-Antoine de Selancy, managing partner and co-founder of London-based 17Capital.

Structured secondaries transactions often carry lower risk

Investors buying a preferred equity position in funds with a structured investment approcach can more easily decrease risk compared to investors in traditional secondary funds, according to a study conducted by 17Capital and PERACS.