Mezzanine and Preferred Equity

Loanetics Fund V

Capital filling the gap between senior debt leverage limits and sponsor equity in the commercial real estate capitalization structure.

$1.300B
Target Fund Size
10–14%
Net IRR Target
8%
Preferred Return
$2M
Minimum LP Commitment
Strategy

What Fund V does.

Loanetics Fund V provides mezzanine debt and preferred equity capital subordinate to first-mortgage debt in the commercial real estate capitalization structure, filling the gap between senior debt leverage limits and sponsor equity for acquisition, renovation, and development business plans.

Investments include preferred return accrual mechanics, PIK interest options, equity conversion rights, and governance protections providing downside protection while participating in sponsor equity upside above the preferred return threshold.

Target investments involve institutional sponsors, transitional asset business plans, and cycle-appropriate leverage limits.

At a glance

Key terms

SectorMezzanine and Preferred Equity
VehicleDelaware Limited Partnership
Target Fund Size$1.300B
Net IRR Target10–14% net IRR
Preferred Return8% compounded annually
Carried Interest15% above 8% pref (100% GP catch-up)
Minimum LP Commitment$2,000,000
AuditorPwC
Fund CounselLePore Law Group
GovernanceLP Advisory Committee
Ideal borrower

Who Fund V serves.

Institutional CRE sponsors requiring flexible capital between senior debt and equity — including preferred return, PIK options, and equity kickers on value-add and development business plans.

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Hallmark features

How the loans are structured.

  •  Preferred return accrual mechanics
  •  PIK interest options
  •  Equity conversion features
  •  Governance protections
  •  Downside participation controls

Interested in Fund V? Qualified LP investors can request the fund deck, PPM, LP subscription package, and audited platform financials through Investor Relations. Borrowers can submit a loan application directly through the Borrower Intake portal.