The evolving private capital landscape

For much of the last two decades, an owner seeking capital faced a short list of familiar options: a bank facility, a public listing, or a sale to a strategic buyer or private equity sponsor. That list is no longer short.

Private credit funds now lend where banks once did. Family offices invest directly rather than through intermediaries. Continuation vehicles allow sponsors to hold assets beyond a fund's original life. Minority and structured equity have become ordinary tools rather than exotic ones.

The result is genuine choice. It is also genuine complexity. Two offers that look similar in headline value can differ sharply in control, covenants, governance and what happens when plans change.

For owners, the first question is no longer simply who will pay the most. It is which form of capital fits the business, its management and its next five years — and which counterparty will still be a good partner when circumstances are less favorable than today's.

That is a question of judgment as much as price. Answering it well requires a clear view of the full range of alternatives, an honest account of what each demands in return, and the discipline to compare them on the same terms.

Velvl Greene