What Is Capital Solutions? Bridging the Gap Between Debt and Equity

Michael Fiddy, Electra Callan, Mark Evans and Christopher Street of Mayer Brown discuss the growing role of capital solutions in bridging the gap between traditional senior debt and common equity, outlining how instruments such as Holdco PIK debt, preferred equity, hybrid securities and NAV facilities are providing sponsors and borrowers with more flexible financing options amid tighter bank lending and longer investment holding periods, while emphasising the complex intercreditor, governance and documentation issues these bespoke structures create.

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