Preferred Return

“A distribution of profits to preferred equity Investors that is made before distributions are made to common equity Investors. Preferred returns can relate to the return of invested capital and/or a percentage return on the invested capital. The specific terms of the return are specified in the Issuer’s Articles of Incorporation (for a C Corporation) or Operating Agreement (for an LLC). See “Private Equity Term Sheet: Typical Terms and Conditions” for additional terms. A term related to equity issuance.”