Hybrid Capital

Latham’s Hybrid Capital team advises the broadest range of market participants on a full spectrum of bespoke financing solutions. We bring exceptional insight to hybrid instrument transactions, having advised on countless market-leading hybrid deals to fill gaps in capital structures between senior debt and control equity, and to finance acquisitions, growth, dividend recaps, fund liquidity solutions, and rescue financings. 

We regularly advise clients in the hybrid capital space, including:

  • Private equity and credit funds
  • Mezzanine and opportunities funds
  • Structured equity funds
  • Venture capital and growth funds
  • Sovereign wealth funds and other capital providers
  • Sponsored, VC-backed, and non-sponsored issuers and borrowers

Our global team works at the cutting edge of market terms across all market segments, including growth, financings, pre-IPO and IPO-related financings, and middle market financings, as well as large cap transactions. We bring a powerful combination of market-leading transactional experience, deep industry knowledge and regulatory capabilities, and longstanding relationships with industry players to each transaction. We leverage our global platform and our reputation for innovation to guide clients through complex, cross-border, and creative financing transactions, from structuring to efficient execution. 

With access to Latham colleagues with hybrid capital experience in tax, antitrust, corporate governance, and regulatory practices, we can seamlessly advise clients across the full spectrum of hybrid capital products, including:

  • Debt-like preferred equity
  • Convertible preferred and debt
  • Holdco debt
  • Private second liens
  • Growth instruments
  • Pre-IPO financings
  • Equity kickers, including warrants and common equity co-investments
  • Unitranche facilities
  • Private high yield
  • Other Junior debt

Our team has long practiced at the cutting edge of the hybrid capital space, partnering with clients to develop innovative hybrid solutions in all market environments. We draw on a deep understanding of market dynamics across a range of deal sizes and transaction structures, as well as longstanding relationships with all of the key market players. We pair this market leading knowledge and creativity with the resources of the Latham platform to help clients seamlessly execute their most important and complex transactions.