Capital / An introductory guide

Understand the structure.
Ask better questions.

Capital serves different purposes. Its structure affects who bears risk, how cash flows are shared and when commitments come due.

01 / Public markets

Access through traded instruments.

Public equity represents ownership. Bonds and other debt instruments set contractual payment obligations. Issuers may access a broad investor base, while investors assess disclosure, price, liquidity and the rights attached to an instrument.

Questions to explore: Who can participate? What information is disclosed? How could market liquidity change under stress?

02 / Private capital

Terms negotiated around a need.

Private equity, private credit and hybrid instruments can be tailored around a company or asset. Negotiated terms may include covenants, security, governance rights, maturity and transfer restrictions. Flexibility does not eliminate credit, valuation or liquidity risk.

Questions to explore: What rights do lenders and owners hold? How are valuations set? What happens if refinancing becomes harder?

03 / Real assets

Connect funding to operating realities.

Infrastructure, energy and property financing depends on asset characteristics and cash-flow assumptions. Construction timing, contracts, operating costs, regulation and refinancing can all change a project’s funding needs.

Questions to explore: Which revenues are contracted? Who bears cost overruns? What assumptions support debt service?

A simple capital stack

Senior debt Contractual payments; priority depends on documents

Subordinated or hybrid capital Terms and ranking vary by instrument

Common equity Residual ownership; losses can absorb invested capital

Illustration only. Actual priority depends on legal structure, security and jurisdiction.

A more informed starting point

Put your assumptions
into perspective.

Explore the capital planner

Understand the structure.Ask better questions.