Build high-yield real estate in the Bahamas.

What exactly is Mezzanine financing — and why do we use it?

Think of the capital stack in a real estate deal like a building itself: the senior bank loan is the foundation, the equity is the top floor, and Mezzanine sits in between. As a Mezzanine investor, you are not an owner — you are a structured lender with a defined return and a position that gets paid before the equity partners see a cent of profit.

We like this structure because it gives our investors predictable income with a clear priority, while still leaving room for upside participation when a project performs well. Which, in our experience, they do.

And Preferred Equity — how is that different?

With Preferred Equity, you are inside the ownership structure — but with preferential rights. You are an owner, not a lender. The difference matters most if something goes wrong: as a Preferred Equity holder you are first among the owners to receive distributions and return of capital. Common equity — including our own — only participates after your position is fully satisfied.

We find this structure works particularly well for investors who want to feel closer to the asset, not just to a loan agreement.

In plain language — what does “coupon plus upside” actually mean?

During the life of the deal, you receive regular payments — that is the coupon, your current income. When the project is sold or refinanced, you also participate in the profits above a defined threshold — that is the upside. So you are not just waiting for an exit. You earn along the way, and you share in the reward at the end.

That is the structure we believe in — and the one we apply to our own capital in every deal.

Is my capital protected if things don’t go to plan?

We will never promise you that real estate is risk-free — because it isn’t, and anyone who tells you otherwise is not being straight with you. What we can tell you is this: in both structures, your position has priority over common equity. That means losses reach us before they reach you.

And since our own money is in every deal, we have every reason to protect it — which means protecting yours too.

Who is this the right fit for?

In our experience, Mezzanine and Preferred Equity work best for investors who want more certainty than pure equity offers, but are not satisfied with what the fixed income market currently pays. Family offices, private investors with a real estate background, and professionals who understand that illiquidity has a price — and that price is a better return.

If that sounds like you, we should talk.

What does the hold period look like?

Typically somewhere between 18 months and 4 years, depending on the deal. We discuss this before you commit — always. We do not believe in locking up capital without a clear timeline and a clear exit logic. If the timeline does not fit your situation, we will tell you that too.

How is everything documented and secured?

Mezzanine positions are typically secured by a pledge over the project equity — in a default scenario, you can step into ownership. Preferred Equity rights are defined in the operating agreement, legally binding before a single dollar changes hands.

We always encourage independent legal review. Not because we have anything to hide — but because a well-informed investor is a better partner.

Why do Pamela & Christoph offer both structures?

Because no two investors are the same. Some want the clean, lender-like logic of Mezzanine. Others prefer being inside the ownership with preferential rights. We look at each deal, each investor, and each timeline individually — and then we find the structure that makes sense for both sides.

That is the only way we know how to do this.

Ready to talk?

A short conversation is the fastest way to find out if CPH is the right fit for your capital.