Senior and Junior Investment Loans
Senior loans Investors planning to purchase a property with a certain amount of equity (e.g. in the case of real estate funds) may want to use Senior Debt financing. The debt may be provided by one or more banks in the form of a syndicated loan.
Junior loans / subordinated loans
Junior Loans are loans whose equity and servicing obligations are subordinated to those of the senior lender. These loans are charged at a higher interest rate tailored to the project risk.