Capital solutions
Capital options that do not require a change of ownership
Common situations
What owners are usually solving for
Growth and acquisition capital
May be appropriate for owners seeking to:
- Fund organic growth
- Complete acquisitions
- Expand into new markets
- Invest in equipment or technology
- Strengthen working capital
Refinancing and recapitalization
May be appropriate where the owner wants to:
- Refinance existing debt
- Simplify the capital structure
- Obtain partial shareholder liquidity
- Buy out a partner
- Reinvest in the company while retaining operating control
Strategic or minority investment
May be appropriate where the owner values:
- Industry expertise and management resources
- Distribution or customer access
- Growth capital alongside a long-term relationship
- Partial liquidity without a full transition
Instruments
The forms capital can take
Bank financing
Senior secured facilities, term debt and revolving lines for stable cash-flow businesses.
Private credit
Unitranche and non-bank senior debt where flexibility or speed matters more than pricing.
Mezzanine and structured capital
Subordinated debt or preferred equity that limits dilution of common ownership.
Growth equity
Minority capital for scaling businesses, usually with governance rights but not control.
Minority investment
Partial liquidity for shareholders while the owner retains control and upside.
Recapitalization
A reset of debt and equity, often combining liquidity today with continued ownership.
Before you raise
Considerations worth working through first
- How lenders and investors evaluate customer concentration and recurring revenue
- The trade-off between cost of capital and dilution of ownership
- Governance, reporting and covenant expectations after closing
- Whether an advisor-led process is warranted for the size and complexity of the raise
- Timing relative to the company's financial reporting and growth plan
Evaluating a capital decision?
A3 can talk through the realistic options for your business, and which advisors, lenders or investors are active in your market, before you approach anyone.