Structured Finance & Hybrids

    Vitti Capital provides structured finance advisory to businesses and wholesale clients where a standard funding approach may not fully meet their needs. We look at the business, its funding requirements and the options available to determine how capital can be structured in a way that works for the situation. This can involve assessing different sources of debt and capital, considering how funding should be structured, and helping clients understand the costs, risks and implications of the options available to them.
    Our focus is on finding a funding solution that makes commercial sense for the business rather than making the structure more complicated than it needs to be

    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.

    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.

    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.

    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.

    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.