Equity Capital Advisory
Experts at Equity Private Placements
Filling the financing gap for growth-oriented, emerging middle market enterprises.
Capstone Partners’ Equity Capital Markets Advisory Group has been raising equity capital for growth-oriented enterprises, ranging from mid-stage ventures to more mature middle market companies, since 1999.
Our senior professionals have completed over 100 equity private placements, raising over $20 billion of capital. They are in the market every day interacting with investors, which allows them to provide the most up to date input on market terms, structure, valuation, and market activity to our clients.
Equity Capital Markets Advisory Group – Raising Equity Across Sectors
Members of Capstone’s Equity Capital Advisory Group work closely with the firm’s industry and service teams to provide our clients with maximum market coverage and innovative solutions to complex situations. This combination of industry expertise and extensive relationships with hundreds of investors, allows us to deliver the best possible results for our clients executing equity capital raises.
We believe equity transactions are transformational events for our clients, and by finding the right investor with the best terms we help them achieve their long-term goals.
Why Raise Equity Capital?
- to help fund growth initiatives
- to recapitalize the balance sheet
- to provide shareholder liquidity
- to finance an M&A transaction
Common Questions from Equity Capital Markets Advisory Clients
What are the forms of Equity Capital?
Capstone Partners’ Equity Capital Markets Advisory Group works on two types of equity financing: growth equity and structured equity.
What are the Advantages and Disadvantages of Equity Financing?
There are many advantages and disadvantages of equity financing for companies seeking to raise capital. Some advantages include no repayment obligations and no additional financial burden. Some disadvantages include giving up a portion of company ownership and increased costs vs. debt equity due to increased risk. Discover more advantages and disadvantages in this article: Advantages and Disadvantages of Equity Financing?
What is Growth Equity and Who is it For?
Growth Equity is typically in the form of convertible preferred stock. Clients typically are high growth companies with $15 million or more in revenue/ARR and demonstrated strong historical revenue growth.
What is Structured Equity and Who is it For?
Structured Equity is typically structured as redeemable (versus convertible) preferred stock with a PIK dividend and warrants, an has a target return of mid-teens for the investor resulting in a less dilutive financing for the issuer. Clients typically middle market companies with greater than $50 million in revenue and more than $20 million in EBITDA.
Why work with an Equity Capital Markets Advisor?
The experienced professionals in Capstone’s Equity Capital Markets Advisory Group will be completely dedicated to you, offering a competitive advantage by providing critical market knowledge and input on valuations, potential investors, terms and the process. You stay focused on running your company, while Capstone’s team does the heavy lifting to execute your deal, including:
- developing marketing materials
- conducting due diligence
- investor outreach
- deal negotiation
- structural guidance
Who are the Investors?
Typical investors for equity placements include:
- Late-stage Venture Funds
- Growth Equity Funds
- Private Equity Funds
- Structured Equity Funds
- Family Offices
- Crossover Buyers
- Sovereign Wealth Funds
- Fund of Funds
- Corporate Venture Funds
Recent Equity Capital Markets Advisory Transactions
Want to know if an equity financing transaction might be appropriate for your company? Start a conversation with Equity Capital Advisory professional today.