Syndicate and Preferred Return

[Scott W.]

When syndicating a deal, do you always offer Preferred Returns and if so, is the Preferred Return paid out annually or can it also just be a return that investors must average (b/w cash flow and equity gains) before any other dollars are split with the Sponsor? Thanks

[Brian Adams]

@Scott W., @Jeff Greenberg is exactly right.

I just wanted to add, if this is your first syndication you might have to give away more of your deal to get started and develop a track record with your investors.