Structured Finance & Hybrids
Institutional-grade structured finance solutions delivered through a practical, outcomes-focused structured finance advisory service (wholesale clients only). We design hybrid securities—convertibles, preferred equity, and revenue-participation notes—that align return potential with risk appetite, ideal for investors seeking bespoke payoff profiles and for issuers aiming to optimise capital structure.
What we design
Convertibles & notes
Fixed/floating coupons with conversion mechanics tied to milestones or price hurdles.
Preferred equity
Priority distributions, step-ups, and negotiated governance rights.
Revenue-participation notes
Cash-flow-linked returns with pre-agreed caps/floors.
Custom hybrids
Pari passu / subordinated constructs, warrants, and profit-share overlays.
Where it fits
Growth & expansion
Funding product roll-outs, acquisitions, and market entry without excessive dilution.
Bridge capital
Pre-IPO / pre-refi bridges with tailored covenants and call features.
Recaps & restructures
Balance-sheet optimisation and covenant resets with investor-friendly protections.
How It Works
Scope & objectives
Define issuer/investor goals, risk limits, and timeline.
Diligence
Legal, tax, collateral, and waterfall testing; sensitivity and downside cases.
Lifecycle support
Ongoing monitoring, amendments, and event management.
Structuring & pricing
Model scenarios, coupons, conversion ratios, and upside-sharing.
Documentation & execution
Term sheets, subscription docs, and settlement coordination.
FAQ's
What is structured finance and how does it benefit Australian businesses?
Structured finance is a customised funding solution that combines debt, equity, or hybrid securities to match a company’s growth goals and cash flow profile. In Australia, structured finance is commonly used for acquisitions, expansion funding, recapitalisations, and pre-IPO capital raises where traditional bank lending may be too restrictive.
What types of hybrid securities are commonly used in structured finance?
Common hybrid securities include convertible notes, preferred equity, revenue-participation notes, and subordinated debt structures. These instruments help businesses access flexible capital while allowing investors to balance downside protection with potential upside participation.
Who typically uses structured finance solutions in Australia?
Structured finance solutions are generally suited to wholesale investors, growth-stage companies, private businesses, and corporates undertaking strategic transactions. Australian businesses often use structured finance advisory services when seeking non-dilutive funding or more tailored capital structures than standard equity or bank debt.
How are convertible notes different from traditional business loans?
Convertible notes combine features of debt and equity. Unlike traditional loans, they may convert into equity upon a future funding round, IPO, or agreed milestone. This gives businesses greater flexibility while allowing investors exposure to future company growth.
Why are revenue-participation notes becoming more popular with investors?
Revenue-participation notes are gaining traction because returns are linked to company revenue performance rather than fixed repayments alone. For investors, this can provide enhanced yield potential, while businesses benefit from repayment structures that align more closely with operational cash flow.
