News & Analysis

PODCAST: Everything you wanted to know about preferred equity

Preferred equity isn’t new but firms such as 17Capital are applying it to private equity via dedicated funds. In this 26-minute podcast we speak to managing partner Augustin Duhamel about the strategy that is quietly taking the market by storm.

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Preferred equity is a topic that divides market participants. Its proponents believe it is an off-market strategy with tremendous potential for growth, while its doubters say it will never exceed 4 percent to 5 percent of secondaries market volume.

Sister publication Secondaries Investor recently sat down with Augustin Duhamel, a founder and managing partner at preferred equity pioneer 17Capital, to discuss the ins and outs of the strategy. Duhamel is well-placed to talk about the topic: his firm launched the first-ever dedicated preferred equity fund in 2009 with an €88 million vehicle, and has since gone on to raise €1.2 billion with its fourth iteration in 2017.

In this 26-minute podcast, Duhamel walks us through the basics of preferred equity, describes examples of how it can be used and discusses why the preferred equity market is a lot larger than most assume.