Why are preferred equity and mezzanine debt investments part of the Fund’s strategy?
Preferred equity and mezzanine debt investments function differently than typical equity ownership of a property. Preferred equity and mezzanine debt investments are typically less risky than equity investments and they come with an attractive rate of interest payable by the borrower. These investments are included in the Strategic Credit Fund portfolio to diversify overall risk and to take advantage outsized risk-adjusted return opportunities.