Equity, Hybrid & Risk Capital
Risk capital provides the higher risk, initial-loss elements of a capital structure. Funds can be deployed at various points in the capital structure depending on the risk appetite of the investor. The lower risk end of the spectrum tends to involve a form of junior or mezzanine debt including hybrid instruments with the higher risk level being pure equity.
Centrus advises companies across the capital structure and is able to raise equity capital as well as any type of debt finance from senior to the most junior to ensure maximum return for shareholders. Our expertise includes:
- Junior debt – with a lower priority than of another debt claim on the same asset or business in a default scenario and will be paid after senior debt in the payment waterfall.
- Mezzanine debt – a hybrid of debt and equity financing, typically giving the lender the right to convert to an ownership or equity interest in the company if there is a default.
- Equity – the riskiest form of capital investment, raised in a number of ways from a private placement of stock to a public offering. Ultimately the value of equity capital in a business is determined by estimating the current market value of its assets minus all liabilities.
Our capabilities and experience on a significant number of innovative and complex financings, across different jurisdictions, enables us to achieve the most efficient and appropriate financing partners for a client.