As demand for flexible, tailored alternatives to traditional debt and equity accelerates, Simpson Thacher’s Hybrid Capital Practice delivers the sophisticated, commercial counsel that investors and issuers need to structure and execute complex transactions in an increasingly dynamic market. Our team advises asset managers, capital providers, issuers and other market participants on hybrid capital, preferred equity and other bespoke capital solutions across the financing lifecycle.
Our practice encompasses the full spectrum of hybrid capital instruments, including convertible and non-convertible preferred equity, structured equity financings, convertible securities, equity kickers, warrants, PIK instruments, mezzanine notes and other customized capital structures. We design strategies for clients’ most critical financing needs—including acquisition financing, growth capital, dividend and other recapitalizations, fund liquidity solutions and special situations— that address the unique economics, governance and structural considerations of each investment.
We represent both investors deploying preferred equity and hybrid capital to differentiate themselves in competitive markets and issuers seeking innovative financing alternatives that optimize their capital structures.
“Incredibly innovative and creative partners, strong associates, and outstanding intuition...”
– Chambers
Fully integrated with lawyers across the Firm’s Private Credit, Capital Markets, Capital Structure Solutions, M&A and Tax practices, the Hybrid Capital team brings a multidisciplinary perspective that is essential to structuring transactions at the intersection of debt and equity. Our deep integration with the Capital Structure Solutions Practice is particularly valuable in distressed and special situations, where hybrid capital serves as a critical tool for recapitalizations and balance sheet restructurings.
This collaborative approach enables seamless execution of complex, cross-border transactions and ensures that every hybrid instrument is designed to address regulatory, tax, governance and commercial considerations from the outset.
“...creative, hungry and highly commercial... They are consistently at the leading edge of transactions.”
– Chambers
Simpson Thacher’s leadership in private equity, capital markets and restructuring provides the foundation for a hybrid capital practice with unmatched breadth and depth. With offices in key financial centers around the world, we deliver coordinated legal advice and transactional capability to clients navigating the most sophisticated hybrid capital transactions globally.