Investor Participation
Four instruments an investor can use to enter the structure.
Four instruments, one structure
Investors can enter the same structure through different instruments, each with its own place in the cashflow waterfall and its own balance of risk and return. This lets the portfolio match capital to appetite.
Senior secured debt
Lends to the structure with first claim on cashflows and the benefit of the security package. Fixed, predictable return.
Junior / mezzanine debt
Ranks behind senior debt but ahead of equity. Higher return to compensate for its position in the waterfall.
Preferred equity
Receives distributions ahead of ordinary equity, with an agreed preferential return before residual upside is shared.
Ordinary equity
Full exposure to the portfolio's residual value and growth. Last in the waterfall, first in long-term upside.
How the instruments compare
Each instrument trades priority in the waterfall against return.
| Instrument | Waterfall priority | Return profile | Security benefit |
|---|---|---|---|
| Senior secured debt | Highest (Level 3) | Fixed, lower | Full security package |
| Junior / mezzanine | Level 5 | Fixed, higher | Subordinated security |
| Preferred equity | Level 6 | Preferential distribution | Ranked ahead of ordinary equity |
| Ordinary equity | Lowest (Level 7) | Residual / variable | Residual claim only |
Senior secured debt
- Waterfall priority
- Highest (Level 3)
- Return profile
- Fixed, lower
- Security benefit
- Full security package
Junior / mezzanine
- Waterfall priority
- Level 5
- Return profile
- Fixed, higher
- Security benefit
- Subordinated security
Preferred equity
- Waterfall priority
- Level 6
- Return profile
- Preferential distribution
- Security benefit
- Ranked ahead of ordinary equity
Ordinary equity
- Waterfall priority
- Lowest (Level 7)
- Return profile
- Residual / variable
- Security benefit
- Residual claim only
Illustrative comparison of investment instruments. Return profiles are indicative only.
The same platform can serve a pension fund seeking secured, fixed income and a growth investor seeking equity upside. The instrument determines the risk; the structure stays the same.
Matching capital to appetite
Executive Takeaway
Four instruments — senior debt, mezzanine, preferred and ordinary equity — let investors choose their place in the waterfall and their risk.
Why this matters to UtCS
A full instrument stack lets UtCS raise capital efficiently, matching conservative and return-seeking investors to the same platform.
Why this matters to investors
Investors pick the instrument that fits their mandate, from secured fixed income to residual equity upside.