Los Angeles–based private equity investment company Base Equities has launched its new fund, Base Preferred Equity Fund I, targeting $50 million in commitments.
The fund will strategically focus solely on small-balance — $1 million to $5 million — preferred equity for commercial real estate investments, with an emphasis on multifamily transactions in the $5 million to $30 million range with proven sponsors who can maximize the upside through value-add renovations.
“This fund is uniquely dedicated to this underrepresented segment of the capital stack and offers investors the opportunity to be insulated from loss while receiving current cash flow, due to each investment’s protections in the lowest equity loss position,” said Michael Bastan, a co-founder and principal of Base Equities. “With this model of short-term investment, in which sponsors typically only need funds for one to three years, investors in the fund will be able to capitalize on cu