A capital raise is when companies approach investors to provide additional capital to the business in the form of either debt or equity.

Equity

Equity raising is when a company raises funds by issuing new shares. This allows the investors to take partial ownership in the business and, in general, funds raised do not have to be repaid.

Debt

Conventional Debt: This form of debt gives the issuer, also known as the borrower (the company in this case), the permission to borrow money from the lender (investor) with the obligation of future repayment, usually with interest. The lender charges interest to compensate for the time value of money, as well as the risk of repayment. In some cases, the debt will be secured against an asset owned by the borrower in order to provide a degree of repayment certainty in the case of default.

Convertible Debt: This form of debt is similar to conventional debt in that it gives the issuer permission to borrow money from the lender with the obligation of future repayment, usually with interest. Unlike conventional debt, convertible debt has a hybrid nature and gives the investor or the company the ability to convert the debt into ordinary equity at a future date in lieu of repayment. This type of security offers several advantages to the investor including downside protection provided by the fixed income, with an added potential exposure to upside in the company’s equity value.

Please check out corporate bonds issues.

How we can assist you

We can set up a fund raising structure, tailormade to suit your needs. Our strategic alliance with licensed EU and Non-EU investment firms and our partnerships with credit and other financial institutions, enable us to offer the full package, from the issue of equities or debt securities to the transfer of capital raising proceeds to issuer’s bank account. Depending on the case, our custom-made structures may involve listing of securities on EU or Non-EU Exchanges and settlement through major clearinghouses such as Euroclear.

For more information, to discuss your capital raising needs and to receive a preliminary quotation, please feel free to contact us.