In the latest issue of Private Equity International, Northleaf's Matt Shafer, Head of Capital Solutions & US Private Equity, discusses the benefits of structured equity in the current high interest rate environment and how it is a strategy that works throughout the economic cycle.
The recent sustained increase in interest rates and the burden that this places on borrowers means that structured equity is drawing significant attention in the market right now. Structured equity is a tool that can meet the need for supplemental capital to support portfolio company growth, as well as the need for liquidity for investors. While structured equity has been around for decades, it has not been systematically used at scale - this is still a relatively undercapitalized space.
Learn more about Northleaf's perspective in the full article titled, “Why structured equity is a tool for all seasons" in the Private Equity International December 2023 issue.