Equity, Debt and Hybrid Capital: Choosing the Right Funding Structure

Choosing how to finance a business is not simply a decision between selling shares and taking a loan. The funding structure influences cash flow, ownership, governance, risk, future fundraising capacity and the range of strategic options available to the company.

Equity, debt and hybrid capital can each support growth, acquisitions, project development, refinancing or working-capital needs. However, the same instrument can be appropriate for one company and unsuitable for another.

A credible funding decision should reflect the company’s maturity, cash-flow visibility, asset base, existing leverage, ownership objectives and ability to meet contractual obligations under both expected and adverse conditions.

The three principal capital categories

Most business funding can be grouped into three broad categories:

1. Equity capital, which provides funding in exchange for an ownership interest.
2. Debt capital, which must generally be repaid according to agreed terms.
3. Hybrid capital, which combines characteristics of equity and debt.

The categories describe economic characteristics rather than one standard contract. Two equity investments can provide different voting, dividend and liquidation rights. Two loans can differ materially in security, repayment, pricing and covenants.

Companies should therefore review the complete legal and economic structure rather than relying only on the name of the instrument.

What equity capital means

Equity capital is funding provided in exchange for shares or another ownership interest in the company. Unlike conventional debt, it usually does not require scheduled repayment of the invested principal.

The investor’s return may depend on:

• growth in the value of the company;
• dividends or other distributions;
• a future sale of shares;
• an acquisition of the company;
• a listing or other liquidity event;
• contractual rights attached to a preferred class of shares.

Equity can provide the company with greater financial flexibility because capital does not normally need to be returned on a fixed timetable. The trade-off is that existing owners share future value and may also share governance rights.

When equity may be more appropriate

Equity funding may be more suitable when the company cannot reliably support scheduled debt payments or when the expected benefit of the capital will take several years to develop.

Situations where equity may be considered include:

• early-stage product or technology development;
• rapid expansion requiring substantial upfront investment;
• a business with limited historical cash flow;
• a project with significant execution uncertainty;
• a company that already has substantial debt;
• a turnaround requiring time before cash generation improves;
• an acquisition that cannot be financed safely with additional borrowing;
• a situation where strategic expertise and governance support are required alongside capital.

Equity can absorb more commercial risk than senior debt, but investors may require a higher expected return because repayment is not guaranteed and liquidity may be limited.

Advantages of equity financing

Equity financing can provide several benefits to the company.

No scheduled principal repayment

Equity generally remains invested until a distribution, repurchase, sale or other liquidity event occurs. This can preserve cash during periods of investment and growth.

Greater tolerance for uncertain cash flow

A company with volatile or developing revenue may be unable to commit safely to fixed debt service. Equity can provide more flexibility when the timing of future cash generation remains uncertain.

Potential strategic support

An active investor may contribute experience, governance, industry relationships, recruitment support or transaction expertise in addition to funding.

Improved borrowing capacity

Additional equity can strengthen the balance sheet and may support future access to debt. Lenders may be more comfortable when shareholders provide a meaningful capital base beneath their claims.

Alignment with long-term growth

Equity investors participate in the future value of the company, which can align them with long-term value creation rather than short-term repayment alone.

Limitations of equity financing

Equity funding does not create scheduled interest expense, but it is not free capital.

Potential limitations include:

• dilution of existing ownership;
• sharing future value with new shareholders;
• new voting or approval rights;
• board representation;
• information and reporting obligations;
• restrictions on future financing or major decisions;
• potential differences over strategy or exit timing;
• a longer and more complex negotiation process.

Founders should evaluate the value of the ownership surrendered together with the capital, expertise and risk-sharing received in return.

Dilution and ownership

Dilution occurs when new shares are issued and an existing shareholder’s percentage ownership decreases.

Dilution should be assessed in several dimensions:

• percentage ownership after the transaction;
• voting power;
• economic rights on a sale or liquidation;
• rights to participate in future funding rounds;
• the effect of employee option pools;
• the effect of convertible securities;
• the amount of additional capital likely to be required later.

A lower ownership percentage in a substantially more valuable and better-capitalised business may still provide a stronger economic outcome. However, this depends on whether the new capital is used effectively and whether future financing needs have been estimated realistically.

Control and governance rights

Equity investors may request governance rights to protect their capital and participate in major decisions.

These rights may include:

• the right to appoint a director or observer;
• approval of annual budgets;
• approval of new debt or share issues;
• approval of acquisitions and disposals;
• approval of material capital expenditure;
• approval of related-party transactions;
• information and inspection rights;
• rights connected to a future sale of the company.

Governance rights do not necessarily mean that the investor manages daily operations. Management authority and reserved investor matters should be defined clearly.

What debt capital means

Debt capital is funding that the borrower is generally required to repay according to a contractual schedule. The lender does not usually receive ordinary ownership merely by providing the loan, although some instruments include conversion or warrant rights.

A debt agreement may specify:

• principal amount;
• interest rate;
• fees;
• repayment schedule;
• maturity date;
• security over assets;
• guarantees;
• financial covenants;
• reporting requirements;
• events of default and enforcement rights.

Debt can preserve ownership, but it creates fixed contractual obligations that must be met regardless of whether the company performs as expected.

When debt may be more appropriate

Debt is generally better suited to a company with sufficient visibility over future cash flow and a credible ability to repay.

Potential uses include:

• working-capital facilities;
• equipment or asset purchases;
• property or infrastructure financing;
• acquisition financing;
• refinancing existing obligations;
• expansion supported by established cash flow;
• short-term funding against contracted receivables;
• financing a project with predictable repayment sources.

Debt should not be selected merely to avoid dilution. The company must be able to service it without placing ordinary operations at unacceptable risk.

Advantages of debt financing

Preservation of ownership

Conventional debt does not normally require the founders to issue ordinary shares. Existing shareholders can retain a larger percentage of future value.

Defined economic cost

The interest, fees and repayment obligations may be established contractually. This can make the direct financing cost more visible than the value of future equity surrendered.

Temporary capital relationship

After the debt has been repaid and the obligations discharged, the lender usually no longer has an economic interest in the company.

Potentially faster execution

Some debt facilities can be arranged more quickly than a complex equity transaction, particularly where the borrower has established financial records and suitable security.

Matching finance to a specific asset or need

Debt can be structured around an asset, acquisition, receivable, equipment purchase or working-capital cycle.

Limitations and risks of debt financing

Debt reduces ownership dilution but increases financial obligations.

Potential risks include:

• interest expense;
• scheduled principal repayment;
• security over business assets;
• restrictions created by covenants;
• refinancing risk at maturity;
• higher costs if benchmark rates increase;
• default risk during underperformance;
• possible enforcement against secured assets;
• reduced flexibility to invest or distribute cash.

Debt that appears manageable under the base forecast may become unsustainable when revenue declines, customer payments are delayed or operating costs increase.

Debt service and cash-flow capacity

The central debt question is whether the company can generate enough cash to meet interest, repayment and related obligations while continuing to operate and invest.

A funding review may consider:

• historical operating cash flow;
• forecast cash generation;
• working-capital volatility;
• capital expenditure;
• tax obligations;
• existing debt service;
• seasonal cash requirements;
• downside performance;
• the availability of committed liquidity.

Accounting profit alone is not sufficient. A business can report profit while experiencing negative cash flow because of receivables, inventory, capital expenditure or debt repayments.

Security and collateral

A lender may require security over assets to reduce the loss that could arise if the borrower defaults.

Security may cover:

• property;
• equipment;
• inventory;
• receivables;
• bank accounts;
• shares in operating subsidiaries;
• intellectual property where legally and commercially appropriate;
• other company assets under a general security arrangement.

The company should understand which assets are secured, whether additional borrowing is permitted and what enforcement rights arise following default.

Financial and operational covenants

Covenants are contractual requirements or restrictions intended to protect the lender and identify deterioration before repayment becomes impossible.

They may include:

• maximum leverage;
• minimum interest coverage;
• minimum liquidity;
• restrictions on additional debt;
• restrictions on dividends or distributions;
• limits on acquisitions and asset sales;
• requirements to maintain insurance;
• financial reporting deadlines;
• restrictions on related-party transactions.

Covenants should be modelled under the base and downside cases before the loan is accepted. A business may be capable of making scheduled payments while still breaching a covenant.

The risk of excessive leverage

Leverage can increase returns to shareholders when the business performs well, but it can also amplify losses and reduce flexibility.

Excessive debt may lead to:

• insufficient cash for operations or growth;
• difficulty responding to market changes;
• breach of financial covenants;
• reliance on refinancing;
• forced asset sales;
• shareholder dilution during an emergency capital raise;
• loss of negotiating power;
• formal restructuring or insolvency risk.

A company should not assume that refinancing will always be available on acceptable terms. Debt maturities, interest-rate exposure and lender concentration should be considered before the facility is entered into.

What hybrid capital means

Hybrid capital combines characteristics of debt and equity. It can be used when ordinary equity would create excessive immediate dilution or when conventional debt would impose repayment obligations that are too restrictive.

Common hybrid instruments include:

• preferred equity;
• convertible debt;
• convertible preferred shares;
• mezzanine debt;
• subordinated debt;
• debt with warrants;
• revenue-linked or profit-linked instruments;
• redeemable shares.

Hybrid capital can create flexibility, but it can also be more complex. The company should model the full outcome under different performance, conversion, refinancing and exit scenarios.

Preferred equity

Preferred equity is an ownership instrument with rights that differ from ordinary shares. It may provide the investor with economic priority or additional protections.

Possible terms include:

• a liquidation preference;
• preferred dividend rights;
• conversion into ordinary shares;
• anti-dilution protection;
• redemption rights;
• board or approval rights;
• priority over ordinary shareholders on certain distributions.

Preferred equity may not require the same scheduled cash payment as debt, but its priority can materially affect the value available to ordinary shareholders on an exit.

Liquidation preferences

A liquidation preference determines how proceeds may be distributed among shareholders during a sale, liquidation or another defined event.

The effect depends on the specific terms, including:

• the preference amount;
• whether the preference is participating or non-participating;
• whether unpaid dividends are included;
• the order of priority among different classes;
• whether the investor may convert into ordinary shares instead.

A headline valuation does not show the complete economic division of exit proceeds. The capital structure must be modelled through the distribution provisions.

Convertible debt

Convertible debt begins as a loan but may convert into shares under agreed conditions. It is often used when the company and investor prefer to defer the final equity valuation until a later financing or milestone.

Relevant terms may include:

• interest rate;
• maturity date;
• conversion event;
• conversion discount;
• valuation cap;
• repayment rights;
• security or subordination;
• treatment during a sale or liquidation.

Convertible debt can reduce immediate valuation negotiations, but it can create uncertainty over future ownership. Founders should model the number of shares that may be issued under several future financing valuations.

Mezzanine and subordinated capital

Mezzanine capital usually ranks behind senior debt but ahead of ordinary equity in the capital structure. It may involve cash interest, payment-in-kind interest, fees, warrants or other participation rights.

It may be used where:

• senior lenders will not provide the full amount required;
• shareholders want to limit immediate equity dilution;
• an acquisition requires several layers of financing;
• the company has positive cash flow but limited tangible collateral;
• the parties need greater flexibility than conventional senior debt provides.

Because mezzanine investors accept greater risk than senior lenders, the expected economic return may also be higher.

Debt with warrants

A loan may include warrants that give the lender the right to acquire shares under agreed terms. This can provide the lender with additional upside while allowing the company to raise debt without issuing the full equity interest immediately.

The company should assess:

• the exercise price;
• the number of shares covered;
• the exercise period;
• anti-dilution adjustments;
• the effect on future fundraising;
• the combined cost of interest, fees and equity participation.

Revenue-linked and profit-linked financing

Some instruments require payments linked to revenue, profit or another operating measure instead of a fixed amortisation schedule.

This can align payments with company performance, but the structure requires careful definition.

Relevant questions include:

• Which revenue or profit definition is used?
• How often are payments calculated?
• Is there a minimum or maximum total return?
• How are refunds, taxes and intercompany transactions treated?
• What reporting and verification rights apply?
• What happens if the company is sold?

A revenue-linked payment can become burdensome for a low-margin company even when revenue is growing. Cash-flow modelling should therefore reflect the complete economics.

Match funding duration to the use of capital

The maturity and repayment profile of the funding should reflect how long the company needs to generate the expected benefit.

For example:

• short-term working-capital needs may be supported by a revolving facility;
• equipment may be financed over its useful economic period;
• a long development programme may require equity or long-dated capital;
• an acquisition may use a combination of equity and term debt;
• a project with staged milestones may use tranche-based financing.

Using short-maturity debt for a long-term and uncertain investment can create refinancing pressure before the project has produced sufficient cash.

Funding working capital

Working capital includes the funding required for receivables, inventory, supplier payments and ordinary operating cycles.

Potential instruments include:

• revolving credit facilities;
• overdrafts;
• receivables financing;
• inventory financing;
• trade finance;
• supplier credit;
• shareholder or equity funding where the cycle is highly uncertain.

The structure should reflect the quality and timing of the assets being financed. Short-term debt may be appropriate for receivables that convert into cash predictably, but less suitable for accumulated operating losses.

Funding business expansion

Expansion can require spending on people, property, technology, marketing, inventory or new locations before the related revenue is realised.

The funding mix should consider:

• the time before the expansion generates cash;
• the reversibility of the investment;
• the reliability of the demand forecast;
• the company’s existing debt;
• the amount of downside liquidity required;
• whether expansion can be staged.

A proven expansion model may support more debt than an untested geographic or product launch.

Funding an acquisition

Acquisitions are often financed with a combination of buyer equity, acquisition debt, seller financing and deferred or contingent consideration.

The structure may depend on:

• the target’s historical cash flow;
• the purchase price;
• the assets available as security;
• expected synergies;
• integration costs;
• the amount of existing debt;
• the seller’s willingness to defer payment;
• the buyer’s capacity to absorb underperformance.

Acquisition debt should not rely entirely on optimistic synergy assumptions. The combined business should be tested under delayed integration, lower revenue and higher costs.

Seller financing and deferred consideration

A seller may agree to receive part of the purchase price after closing. This can reduce the immediate capital required and may help align the seller with post-closing performance.

Structures can include:

• seller loans;
• deferred fixed payments;
• earn-outs linked to future performance;
• retained minority equity;
• rollover equity into the acquiring group.

Deferred structures require clear definitions of financial performance, control, reporting and dispute resolution.

Funding capital expenditure

Capital expenditure may be financed with company cash, term debt, equipment finance, leases, equity or a combination.

Relevant factors include:

• the expected life of the asset;
• the asset’s resale value;
• how quickly it contributes to cash flow;
• maintenance and replacement costs;
• technology obsolescence;
• the effect on existing security arrangements.

Financing an asset beyond its useful life can leave the company repaying debt after the asset has lost commercial value.

Funding early-stage businesses

Early-stage companies usually have limited operating history and may not generate sufficient cash to support conventional debt.

Funding may therefore rely more heavily on:

• founder capital;
• ordinary or preferred equity;
• convertible instruments;
• strategic investors;
• milestone-based funding;
• limited debt supported by contracted revenue or specific assets.

The company should estimate how much capital is required to reach a meaningful commercial, technical or financial milestone rather than raising an amount disconnected from the next financing stage.

Funding established companies

Established businesses may have more options because they can provide historical financial information, recurring cash flow and assets that may support lending.

The appropriate mix can still vary. A mature but highly cyclical company may require more equity than a predictable recurring-revenue business with the same average earnings.

Key considerations include:

• cash-flow stability;
• existing leverage;
• debt maturity profile;
• capital expenditure;
• customer concentration;
• the purpose of the new funding;
• shareholder appetite for dilution;
• the company’s future exit or ownership plans.

Staged and milestone-based funding

Capital does not always need to be provided in one amount at closing. Staged funding can connect future capital releases to defined milestones.

Milestones may relate to:

• product development;
• regulatory approval;
• commercial contracts;
• revenue or margin performance;
• project completion;
• management recruitment;
• governance or reporting improvements;
• the contribution of matching capital from another source.

Milestones should be objective, measurable and connected to the risk being reduced. A vague milestone can create uncertainty over whether the next tranche must be funded.

Cost of capital is more than the headline rate

Businesses sometimes compare funding options only by looking at an interest rate or percentage of shares issued. A complete cost review should consider all material economic and operational consequences.

For debt, the full cost may include:

• cash interest;
• payment-in-kind interest;
• arrangement and commitment fees;
• legal and diligence costs;
• security and monitoring costs;
• prepayment fees;
• warrants or equity participation;
• restrictions created by covenants.

For equity, the cost may include:

• ownership dilution;
• sharing future value;
• preferred economic rights;
• governance rights;
• exit and transfer provisions;
• future anti-dilution effects;
• time and cost required to complete the transaction.

The cheapest instrument under the base case may not be the safest or most flexible under a downside case.

Capital structure and company valuation

The funding structure can influence both enterprise value and the value available to ordinary shareholders.

Debt, preferred equity and other senior claims may need to be satisfied before ordinary shareholders receive proceeds.

A valuation review should therefore distinguish:

• the value of the operating business;
• cash and debt adjustments;
• preferred claims;
• convertible securities;
• employee options;
• the distribution of value among share classes.

A company can have an attractive enterprise value while ordinary shareholders receive a smaller amount than expected because of debt and preferred rights.

Funding structure comparison

Instrument	Repayment profile	Ownership effect	Typical protections	Potential suitability
Ordinary equity	No scheduled principal repayment	Immediate ownership dilution	Voting, board, information and reserved-matter rights	Growth, early-stage development and uncertain cash flow
Preferred equity	Usually no conventional amortisation, although redemption may apply	Ownership dilution with economic priority	Liquidation preference, dividends, conversion and approval rights	Growth capital requiring stronger investor protection
Senior secured debt	Interest and principal according to contract	Usually no ordinary ownership dilution	Security, covenants, guarantees and enforcement rights	Established cash flow, assets, acquisitions and refinancing
Revolving credit	Borrowing and repayment within an agreed limit	No ordinary ownership dilution	Borrowing-base tests, covenants and security	Seasonal and short-term working-capital needs
Convertible debt	Debt until repayment or conversion	Future dilution if converted	Maturity, interest, conversion discount or valuation cap	Bridge funding and deferred valuation discussions
Mezzanine capital	Contractual return, often with flexible or deferred components	Possible warrants or equity participation	Subordinated claims, covenants and participation rights	Acquisitions, growth and gaps between senior debt and equity
Revenue-linked financing	Payments linked to revenue or another metric	Usually limited or no ordinary equity dilution	Reporting, audit and payment-formula rights	Companies with recurring revenue but uneven cash flow
Seller financing	Deferred payment to the seller	Depends on whether rollover equity is included	Payment terms, security and performance conditions	Acquisitions where immediate funding is limited

A practical funding decision framework

A structured decision can begin with the purpose of the capital and then test whether the company can support the obligations created by each instrument.

Step one: define the use of funds

Identify exactly how much capital is required, when it is needed and how it will be used. A general request for growth capital is less useful than a documented allocation by initiative and period.

Step two: identify the expected cash-flow timing

Determine when the funded activity is expected to generate cash and how reliable that expectation is.

Step three: assess downside capacity

Test whether the company can continue operating and meet obligations if revenue is lower, costs are higher or the project is delayed.

Step four: review the current capital structure

List existing debt, security, covenants, share classes, options, convertible instruments and shareholder rights.

Step five: model ownership and cash outcomes

Show how each option affects cash payments, ownership, control and exit proceeds under several scenarios.

Step six: consider future financing

Assess whether the proposed instrument supports or restricts later fundraising and refinancing.

Step seven: compare legal and operational obligations

Review reporting, covenants, governance, security, approval rights and consequences of default.

Step eight: select the structure that remains credible under stress

The selected structure should not depend entirely on the most optimistic forecast. It should provide enough flexibility to manage reasonable underperformance.

Questions businesses should answer before raising capital

• What is the exact use of the capital?
• How much funding is required now and later?
• When is the funded activity expected to generate cash?
• Can the company support interest and repayment under a downside case?
• Which assets are available as security?
• What ownership dilution is acceptable?
• Which governance rights can be shared?
• How will the funding affect future capital rounds?
• What happens if the forecast is delayed?
• What happens if refinancing is unavailable?
• Does the company understand the full legal and economic cost?
• Is the reporting infrastructure capable of meeting investor or lender requirements?

Information required for a funding review

Potential capital providers may request information such as:

• historical financial statements;
• management accounts;
• financial forecasts;
• cash-flow projections;
• current debt schedule;
• ownership and capitalisation table;
• details of existing investor and lender rights;
• use-of-funds schedule;
• customer and supplier concentration;
• material contracts;
• asset and security information;
• downside and sensitivity analysis.

Businesses preparing a funding submission should review the Project Investment Terms before providing materials.

Common funding-structure mistakes

Choosing debt only to avoid dilution

Preserving ownership is not beneficial when the resulting debt places the company at unacceptable risk of default or restructuring.

Raising equity without modelling future rounds

The first round may appear manageable, but later financing, options and convertible instruments can create substantially greater dilution.

Using short-term debt for long-term development

This can create a repayment or refinancing requirement before the project has generated sufficient cash.

Ignoring covenant headroom

A facility may be repayable from expected cash flow but still create a covenant breach under a moderate downside case.

Comparing only headline pricing

Fees, warrants, security, governance, conversion rights and restrictions can materially change the complete cost.

Underestimating future working capital

Growth can consume cash even when revenue and profit increase. The funding requirement should include receivables, inventory and seasonal needs.

Assuming refinancing will be available

Credit markets, lender appetite and company performance can change before maturity.

Failing to define milestone conditions

Ambiguous milestones can delay future capital and create disputes over whether the company has satisfied the agreed requirements.

Funding checklist for businesses

• Define the amount, timing and use of funds.
• Prepare integrated profit, balance-sheet and cash-flow forecasts.
• Build base, downside and delayed-execution cases.
• List all existing debt, security and covenants.
• Prepare a fully diluted ownership table.
• Model future financing rounds and dilution.
• Compare the complete economic cost of each instrument.
• Review governance, information and approval rights.
• Match funding maturity to the use of capital.
• Assess covenant headroom before accepting debt.
• Identify refinancing risk.
• Maintain enough liquidity for reasonable underperformance.
• Obtain suitable financial, legal and tax advice before execution.

Funding checklist for investors and lenders

• Verify the stated use of funds.
• Assess whether the instrument matches the company’s maturity.
• Review historical and forecast cash generation.
• Test downside debt-service capacity.
• Review the complete existing capital structure.
• Assess asset quality and security where relevant.
• Review dilution and conversion outcomes.
• Confirm the ranking of each instrument.
• Evaluate future capital requirements.
• Assess management reporting capability.
• Define milestone and escalation processes clearly.
• Consider recovery and exit outcomes under several scenarios.

Frequently asked questions

Is equity always more expensive than debt?

Not in every circumstance. Debt may have a lower stated cost, but it creates repayment, covenant and default risk. Equity involves dilution and sharing future value. The appropriate comparison depends on performance and transaction outcomes.

Can a company use equity and debt together?

Yes. Many funding structures combine equity with senior debt, working-capital facilities or other instruments. The equity can provide a financial base while the debt finances specific assets or cash flows.

How much debt can a company support?

The answer depends on cash-flow stability, working-capital needs, capital expenditure, existing obligations, asset quality and downside resilience. A debt amount should not be selected from a general market ratio alone.

Does issuing equity mean founders lose control?

Not automatically. Control depends on ownership percentages, voting rights, board composition and reserved matters. These terms should be reviewed together.

What is the main risk of convertible debt?

Convertible debt can create uncertainty over future ownership and may still require repayment if conversion does not occur. The company should model both conversion and non-conversion outcomes.

Why might a company choose preferred equity?

Preferred equity can provide capital without conventional scheduled amortisation while giving the investor economic priority and governance protections. The effect on ordinary shareholders should be modelled carefully.

Can debt be used by a loss-making company?

It may be possible where the company has suitable assets, contracted revenue, shareholder support or another credible repayment source. However, debt based only on optimistic future profitability may create significant risk.

What happens when a company breaches a covenant?

The consequences depend on the agreement. A breach may require reporting, remediation, waiver fees, amended terms, additional security or repayment. Material concerns should be discussed before the breach becomes unavoidable.

Should a company raise more capital than it currently needs?

Additional capital can provide liquidity protection, but it may also increase dilution, interest cost or unused commitment fees. The company should balance funding certainty with the cost and obligations created.

Final perspective

There is no universally superior form of business funding. Equity, debt and hybrid capital allocate risk, control, cash obligations and future value in different ways.

Equity may be appropriate when cash flow is uncertain and long-term risk must be shared. Debt may be suitable when repayment can be supported reliably and ownership preservation is important. Hybrid structures can bridge the two, but they require careful modelling because their complete economics may be less obvious.

The strongest funding structure is not necessarily the one with the lowest headline price. It is the structure that supports the intended use of capital, remains credible under downside conditions and preserves enough flexibility for the company’s future needs.

Sharemont’s broader assessment principles are described in the Investment Approach. Businesses considering a capital submission should review the Project Investment Terms. Prospective investors should review the Fund Investment Terms and the Risk Disclosure. Structured enquiries can be submitted through the Sharemont Enquiry Desk.