#312: Vetting Partners, Importance of Transparency, and Diving Into The Pros and Cons of Preferred Equity with Steeve Breton

In this episode, Axel sits down with Steeve Breton, Founder of Velocity Capital Partners, to break down what long-term multifamily investors need to understand about partner selection, transparency with investors, and the growing role of preferred equity and structured capital in today’s market.

Steeve shares his journey from buying small duplexes in New England to sponsoring and investing in 25+ large multifamily and development deals across the U.S. The conversation dives deep into how partnerships evolve over time, what can go wrong when alignment breaks down, and why control and transparency have become non-negotiables in today’s environment.

The episode also includes an in-depth, tactical discussion on preferred equity and structured equity, including when it makes sense for sponsors, how it protects LPs, and how it’s being used to solve real capital stack challenges in a tougher fundraising market.

If you’re a sponsor navigating partnerships, raising capital in today’s environment, or considering preferred equity as part of your deal structure, this episode is packed with real-world insight.

Join us as we dive into:

• Steeve’s path from small local rentals to large-scale multifamily investing
• Why partner quality matters more than market selection
• Hard-earned lessons from partnerships that didn’t work out
• How to properly vet partners (including background checks and gut instincts)
• Why radical transparency is becoming essential for raising capital
• How preferred equity and structured equity actually work
• The role preferred equity plays in protecting LPs during stressed periods
• When preferred equity makes sense for sponsors — and when it doesn’t
• Market conditions and deal types Steeve is avoiding today
• How today’s supply dynamics are impacting underwriting and risk assessment

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Connect with Steeve:

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Learn more about Velocity Capital Partners