Capital markets
Advice on raising equity and debt for growth, acquisitions, and refinancing, from the investors and lenders best suited to the business.
Raising capital
The terms of a raise stay with a company long after the money is spent. Structure, price, and the choice of investor decide how much control owners keep and how much room the business has to grow.
We build the investment case, identify the investors and lenders whose mandate fits, and run a process that gives our clients several offers to choose from.
The aim is the best terms available, and a capital partner who suits the owner’s long-term plans.
The capital stack
Every company’s capital sits in layers. Select a layer to see what it costs, where it ranks, and how much control it asks for.
Paid last, highest cost
Paid first, lowest cost
Common equity
Shares in the company itself. Investors share fully in the upside and the risk, and usually ask for board seats and a say in major decisions.
- Cost of capital
- Repayment priority
- Control given up
Suited to companies with strong growth plans, or owners ready to bring in a long-term partner.
Preferred equity
Equity that is paid before common shareholders, often with a set return. It avoids fixed debt payments while limiting how much control changes hands.
- Cost of capital
- Repayment priority
- Control given up
Suited to recapitalizations and growth plans where owners want to keep control.
Mezzanine debt
Debt that ranks behind senior lenders, often with interest plus a small equity feature. It stretches total leverage further than senior debt alone.
- Cost of capital
- Repayment priority
- Control given up
Suited to acquisitions and buyouts that need more capital than banks will lend.
Senior debt
Loans secured by the company’s assets and paid first. It is the lowest-cost capital, with covenants that set limits on how the business operates.
- Cost of capital
- Repayment priority
- Control given up
Suited to steady cash-flow businesses, refinancing, and the base of most acquisition financing.
Services
From a first institutional raise to a full recapitalization, matched to the company’s stage, cash flow, and goals.
Growth equity
Minority or majority equity to fund expansion, with terms that keep the owner involved.
Private placements
Equity and debt placed directly with institutional investors and family offices.
Private credit
Senior, unitranche, and mezzanine debt from non-bank lenders, sized to cash flow.
Acquisition financing
Capital for a specific acquisition or a series of them, matched to the deal timeline.
Recapitalizations
A new capital structure that returns cash to shareholders or supports a change of ownership.
Refinancing
Replacing existing debt to extend maturities, lower cost, or loosen covenants.
How a raise runs
We manage the raise from start to funding so management can stay focused on the company.
Strategy
How much to raise, and the right mix of equity and debt.
Investment case
A clear story backed by analysis and projections.
Targeting
A short list of investors and lenders whose mandate fits.
Negotiation
Competing term sheets compared on price, structure, and control.
Funding
Diligence, documents, and closing of the capital.
Common questions
How much capital can we raise?
It depends on revenue, profitability, growth, and the type of capital. Equity is sized around the growth plan, and debt capacity mostly follows earnings and cash flow. We set a realistic range early.
Should we raise equity or debt?
Debt usually costs less and avoids dilution, but it needs steady cash flow. Equity gives more flexibility and a partner in exchange for ownership. The capital stack above shows the trade-offs, and we model them for your company.
How long does a raise take?
Most private raises take three to six months from engagement to funding, depending on the structure and the number of investors involved.
Will we give up control?
Not necessarily. Many raises are minority investments or debt, where existing owners keep control. We negotiate board seats and investor rights as carefully as price.
What do investors want to see?
A clear record of performance, a credible growth plan, a capable management team, and a defined use for the money. We help prepare each before any investor conversation starts.
Begin with a conversation
Every inquiry is confidential and carries no obligation. Write to us about the company and the decision in front of you, and a senior banker will reply with a straight view of your options and the likely timing.
Raising capital
For companies considering growth equity, debt, or a recapitalization.
Email about raising capitalSelling or buying a company
For owners weighing a sale, and buyers with a target in mind.
Email about M&AOr email info@keystonecapadvisors.co
