In private capital transactions, outcome is determined by structure.
Structure defines:
Capital position in the transaction
Priority of payments
Risk allocation
Return distribution
Control and governance rights
Security and collateral
Covenants
Exit mechanism
Downside protection
Two identical transactions can produce different outcomes depending on structure.
Private capital evaluates structure to determine:
Risk exposure
Return potential
Control position
Exit visibility
Weak structure increases risk for both sponsor and capital.
Strong structure aligns risk, return, control, and exit.
In private capital markets, structure is not a technical step.
Structure is the transaction.
Structure defines outcome.
Latest Post
A business may have revenue, growth, and profitability, and still be inadmissible to capital. Because capital evaluates transactions, not businesses
Many transactions approach capital with a business plan but without a defined transaction structure. Capital does not structure transactions. Capital evaluates structure.