Longcross Capital - Solutions

The majority of Real Estate finance occurs at the micro-level of individual investments in properties, projects, or deals rather than at corporate level. Classic real estate finance consisted of debt and equity, but in recent years the capital markets have shifted resulting in the growth of more complex capital structures at this micro-level.

 

The Capital Stack

 

 

 

The higher the investment appears in the capital stack, the greater the risk for that investment. The lower the placement, the less risk.

As a consequence, higher stack positions expect greater returns on capital invested because of the higher risk involved.