Transaction-Specific Capital
Raise equity for an identified acquisition without operating a committed private equity fund.
Structured Capital for Acquisition Closings
Preferred Equity for Business Acquisitions
Financely structures and places preferred equity for buyers and independent sponsors that have identified an acquisition but require additional capital beyond senior debt and buyer equity.
Preferred equity can complete the capital stack while defining investor returns, governance and downside protection.
Complete the Equity Requirement Without Rebuilding the Deal
Senior lenders rarely finance the full acquisition price. When the buyer cannot provide the remaining equity, preferred capital can bridge the gap without placing every investor on identical common-equity terms.
We model the required investment, return structure and governance package before presenting the transaction to suitable capital providers.
Request a Preferred Equity ReviewWhere Preferred Equity Fits
Supplement Management Capital
Combine management equity with preferred capital, senior debt and seller participation.
Preserve Buyer Liquidity
Complete a corporate acquisition without using all available cash at closing.
Buyers requiring a broader combination of senior debt, mezzanine capital and equity can review our business acquisition financing advisory service. Where the remaining capital gap has already been calculated, see acquisition equity gap financing.
Preferred Equity Structures
Preferred Return
The investor receives an agreed priority return before common-equity distributions are made.
Participating Preferred Equity
Capital may receive a preferred return plus participation in additional upside after defined thresholds.
Redemption and Exit Rights
The structure may include repayment, refinancing or sale mechanisms at agreed dates or upon specific events.
Governance and Protection
Investors may receive board rights, reporting protections and consent rights over major corporate actions.
Building an Investable Acquisition
Investors will review the purchase price, normalized EBITDA, senior debt terms and management plan. They will also test whether the proposed returns can be supported without restricting working capital or post-closing growth.
Financely can prepare the investment case through its acquisition financing packaging service and model the complete capital stack through acquisition financial modeling. Seller participation may also be negotiated through our seller financing advisory service.
Our Process
1
Transaction Review
We assess the target, valuation, debt terms and remaining equity requirement.
2
Investment Structure
We model returns, ownership, governance and exit mechanics.
3
Investor Placement
We present the opportunity to suitable structured equity providers.
4
Closing Support
We align the preferred equity terms with lenders and transaction counsel.
Fill the Remaining Acquisition Capital Gap
Submit the signed LOI, purchase price, senior debt terms, buyer contribution and required equity amount for an initial review.
Submit an Acquisition OpportunityFrequently Asked Questions
What is preferred equity in an acquisition?
Preferred equity is acquisition capital that receives negotiated priority economics and protections ahead of common equity.
Does preferred equity dilute the buyer?
It can involve ownership or participation rights. The degree of dilution depends on the negotiated structure and investor return.
Can it sit alongside senior acquisition debt?
Yes. The preferred investment must be structured to comply with the senior lender’s documentation and distribution restrictions.
Is a signed LOI required?
Serious capital providers generally expect a signed LOI, defined purchase price and access to financial and diligence information.
Does Financely provide the equity directly?
No. Financely provides advisory, structuring and placement support. Third-party investors make final investment decisions.
This page is provided for general information and does not constitute a commitment to arrange or provide capital. Financely works on a best-efforts basis. All mandates remain subject to KYC and AML review, sanctions screening, diligence, investor approval and definitive documentation.