Investment Approach
RSF Partners' Investment Approach utilizes four primary structures to make investments.
Pari Passu/Preferred Equity
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Invest as a limited partner in a partnership structure with the Sponsor or Operating Company.
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Pari Passu Equity has no preferential treatment over Sponsor Equity and earns a relatively lower Preferred Return in exchange for a higher residual ownership interest or share of profits.
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Preferred Equity is senior to Sponsor Equity and offers a higher residual ownership interest or share of profits to the Sponsor in exchange for a higher Preferred Return to the Preferred Equity.
Program Equity
- Capital committed to a developer/operator with specialized expertise, typically in the form of Preferred or Pari Passu Equity.
- Capital is used to fund a series of projects within the operator's niche.
Bridge Capital
- Short-term capital provided to an investment until permanent capital is available.
- Generally structured as Preferred Equity or Mezzanine Debt.
Sponsor Capital
- Capital committed to fund the Sponsor's share of required Equity.
- Capital is typically equal to 5-25% of total required Equity.
- Sponsor normally receives development/asset management fees and profits interests in the investment partnership.
