Proskauer helps issuers and financing sources address the growing need for alternative financing and hybrid capital solutions that bridge traditional equity and credit markets. We help market participants evaluate complex investment opportunities, working with issuers, including publicly traded entities, and financing sources, including private credit and private equity funds, structured financing funds, special opportunities funds, sovereign wealth funds, family offices, and other asset managers.

We address each situation with products such as structured preferred equity (or “debt-like” preferred equity), convertible preferred equity, convertible debt, subordinated debt, and warrants. These investments are often structured alongside other tranches of equity and debt instruments.

Our Hybrid Capital team represents issuers and financing sources in middle-market transactions ranging from $25 million to $1 billion, including acquisition financings, dividend recap financings, growth financings, debt and equity refinancings, secondary transactions, and liquidity fund solutions. We also represent market participants structuring capital solutions in special situations and restructurings, including rescue financings, debt-to-equity exchanges, and similar situations.

Each situation is different. Our multidisciplinary team includes lawyers from our M&A, private credit, capital markets, private funds, insolvency, tax, and related disciplines who regularly work together on these transactions. That breadth of perspective gives issuers and financing sources integrated advice on all aspects of a transaction, including funding commitments, covenant protection, dividend and coupon payments, governance rights, and exit terms.