What is a preferred return?

Answers from the sources

  1. Smartland

    “Preferred return is a designated amount of distributable cash to be returned to the investor before any return splits. For example, if a deal has a preferred return of 8%, then the first 8% returned on an investment (distributions from cash flow or capital events such as refinance proceeds or disposition) will go entirely to the Limited Partners.”

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Published
2026-10-24
Modified
2026-10-24
ready-scan-subjects/Q57171271
revision Q57171271:content:b2df3aefb514eeef

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