Structured capital is funding designed around the specific needs of a business or transaction rather than a standard loan or share issue. It blends features of debt and equity — such as subordination, payment-in-kind interest, preferred returns, warrants or convertibility — to balance cost, control, risk and flexibility for the company and the capital provider.
It unlocks funding where conventional debt is too rigid and straight equity too dilutive, tailoring risk and return to the situation.
Used in growth funding, recapitalisations, special situations and complex real estate structures.
Structured capital is funding designed around the specific needs of a business or transaction rather than a standard loan or share issue. It blends features of debt and equity — such as subordination, payment-in-kind interest, preferred returns, warrants or convertibility — to balance cost, control, risk and flexibility for the company and the capital provider.
Used in growth funding, recapitalisations, special situations and complex real estate structures.
Ordinary loans and share issues come on standard terms; structured capital is designed around a specific situation, blending features of both — subordination, payment-in-kind interest, preferred returns, warrants or convertibility. It sits between debt and equity in cost and risk, trading higher pricing for flexibility and less dilution.
Consider it when conventional debt is too rigid — perhaps because cash flows are lumpy or leverage is already high — and a straight share issue would be too dilutive. It is commonly used in growth funding, recapitalisations, special situations and complex real estate structures.
Speak to a partner about how this applies to your transaction.
