Senior Debt
Most effective when cash flows are visible, leverage is supportable and collateral or enterprise value provides defensible coverage.
ACQUISITION FINANCE
Financing is part of the investment thesis.
A transaction can be strategically attractive and still fail because the capital structure is wrong. Acquisition financing must be built around cash-flow capacity, collateral, covenant headroom, integration requirements and realistic downside cases.
Private credit has expanded the range of structures available to buyers, but flexibility does not remove underwriting discipline. Pricing, security, amortization, covenants and intercreditor arrangements all affect the value that ultimately remains with equity.
CAPITAL STACK
Match the instrument to the cash flow.
Private Credit
Can offer bespoke structures, delayed draws, unitranche solutions or flexible repayment where traditional bank templates are too rigid.
Seller Finance
Deferred consideration, vendor notes and earn-outs can align seller confidence with buyer capital efficiency.
Strategic Equity
Co-investors can contribute capital, sector knowledge, market access or operating capability alongside funding.
UNDERWRITING
Leverage must survive the stress case.
Debt capacity should be assessed against normalized cash flow rather than optimistic forecasts. Working capital needs, maintenance capex, taxes, integration costs and commodity or market volatility can materially change debt service capacity.
A strong financing structure leaves room for the business to operate. The objective is not maximum leverage; it is the lowest-cost capital structure that preserves resilience and strategic flexibility.
