RESOURCES

Equity

The structure of a typical private equity transaction contains between 10 percent and 50 percent equity. Private equity capital makes up the difference between a transaction's total value and the amount provided by senior and subordinated debt.

American Capital can provide your company with equity financing ranging from $250,000 to $10 million. While private equity providers typically prefer to exit an investment in five to seven years, American Capital has no fixed time horizon to exit from its equity investments. This gives you more flexibility to build your company without the constraint of a private equity investor's exit strategy.

Equity investments may be used to meet a number of corporate objectives:

Replacing an existing investor

Equity financing provided by American Capital can be used to buy out an existing shareholder.

Support of a broader financing package

Equity can be used as part of a broader debt and equity package to finance a management or employee buyout, or to undertake an acquisition, growth, rollup or turnaround transaction.