Transitional Capital
Transitional Capital is one of our most flexible debt solutions, enabling businesses to utilize senior debt to support investments, reducing equity requirements and increasing investor returns.
What is Transitional Capital?
What is Transitional Capital? Transitional Capital enables investors to utilise senior debt to support investments, reducing equity requirements and increasing investor returns. ThinCats operates on a fixed rate return basis with no requirement for equity/warrants, with the shareholders benefitting from 100% of the upside:
• A flexible debt solution with a back ended repayment profile linked to the investment thesis and time horizon of the investors
• With a back ended repayment profile and a mix of interest paid and PIK, this supports cash generation which can be reinvested.
Why use Transitional Capital?
ThinCats has deployed over £120m of Transitional Capital to ambitious management teams and investors supporting business growth.
Ability to provide leverage on day one of up to 4x Structuring EBITDA
The ability to commit additional capital, giving investors and management teams comfort they can borrow further to execute their strategy
Transitional Capital is ideal for supporting buy and build strategies, or shareholder recapitalisation to provide a return to shareholders ahead of an exit