Private equity firms are investment companies that specialize in providing capital to real estate sponsors and projects in exchange for an ownership stake in the project. In the realm of commercial real estate, private equity firms can provide financing to real estate developers and investors looking to develop new projects or acquire and or renovate existing properties.
Private equity firms often have access to large pools of capital typically from institutional and/or high net worth investors which they can use to provide financing for commercial real estate projects. This financing can take the form of equity investments (LP equity, joint venture equity, preferred equity), where the private equity firm becomes a shareholder in the real estate development company, or debt financing (senior loan, mezzanine loan, subordinate financing, etc.), where the private equity firm provides a loan to the development company.
One of the key benefits of working with private equity firms for commercial real estate financing is the size and flexibility of the capital they provide. Private equity firms are typically less regulated and can tailor financing solutions to fit the specific needs of a real estate development project, whether it's providing a large lump sum of capital upfront, or providing smaller amounts of capital over time as the project progresses.
Find the right commercial real estate financing with StackSource by getting instantly matched to the best private equity capital providers for your project from our nationwide network of capital sources. Our expert Capital Advisors help you secure your ideal capital stack, resulting in a lower cost of capital for your investments in less time and with more transparency than a traditional commercial mortgage brokerage.