Are you leaning more toward equity partners these days?

Question

I’ve noticed a shift in how a lot of investors are structuring deals lately. More people I talk to are looking for equity partners instead of going the traditional loan route — especially in this high-rate environment.

As someone who helps investors secure funding, I’m starting to feel more like a matchmaker than a broker. The focus isn’t just on capital — it’s on connection, collaboration, and finding the right strategic fit.

For those of you actively buying right now:

➡️ Are you still using loans, or leaning more into partnerships and JVs? ➡️ How are rising rates and overhead impacting your deal flow and decision-making?

Would love to hear how you’re navigating today’s landscape — and what’s working best for you.

Chris Seveney · Answer

For new acquisitions we are still seeing debt deals, we are seeing a lot more equity deals on existing portfolios because sponsors are equity rich and cash poor and need money but are stuck and cannot refinance. In those instances yes you have to play matchmaker. What we are seeing though is a lot of the sponsors going into default because equity partners know they have leverage and are asking for a lot of equity which the sponsor is saying no to - and the sponsor really does not have any other options so it is interesting watching this in some cases to see how it plays out.

Jay Hinrichs · Answer

Our niche the last 14 years is doing equity deals.. but not in junior position only first position.

Denise Webster · Answer

@Chris Seveney That’s a great observation — I’m seeing the same thing. Many sponsors are equity-rich but cash-poor, and equity partners are definitely holding the leverage. It’s creating some tough situations where partnership terms feel more like takeovers than collaboration. It really underscores the need for relationship-driven capital and fair structuring. Are you seeing any creative solutions or hybrid models to balance the risk on both sides?

Are you leaning more toward equity partners these days?

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