Debt vs. Equity Securities: Priority, Control, and Cash Flow
from Syndication Attorney Field Notes with Tilden Moschetti Hosted by Tilden Moschetti
Choosing between debt and equity in a private capital raise is often driven by what sounds easiest to pitch. Sponsors frequently issue promissory notes just because investors like the sound of guaranteed interest. In this field note, we break down the practical differences between offering debt and offering equity, focusing on priority, control, and what happens to your deal during a slow month. We explore the strict legal reality of mandatory obligations and hard maturity dates, and compare it to the operational flexibility of shared-risk equity. Through a clear hypothetical, you'll see why matching your legal structure to your actual cash flow is the best way to avoid accidentally handing control over to your investors. This podcast is for public education and does not constitute legal advice. Also see: Debt Securities vs. Equity Securities in a Private Capital Raise — https://www.moschettilaw.com/debt-securities-vs-equity-securities-in-a-private-capital-raise/ Note: This episode's audio is generated using AI voice cloning technology based on Tilden Moschetti's written work. Watch the video on YouTube: https://youtu.be/xxMbKMfd54Y
Embed this episode
What this episode covers
Choosing between debt and equity in a private capital raise is often driven by what sounds easier to pitch. In this field note, we explore why matching your legal structure to your actual cash flow matters more than the label on the document.
Chapters
No transcript yet.