Private Equity - Equity Issuance (Minority Investment) instead of raising debt for acquisitions

Could a private equity firm choose to issue equity in the form of taking on an outside minority investment (preferred equity) instead of issuing new debt for tuck-in acquisitions? Specifically, the rational behind this would be to not increase debt levels and utilize equity to fund accretive tuck-ins. Are these type of deal structures ever completed? I'm assuming this would be considered minority recap?

5,980 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '27 Jan 2025 Cohort

4.92/5

Investment Banking Mock Interview

“Great guy, kind and easy to interact with. To be honest, I did have a hard time understanding his accent for the first 5 minutes but I was able to quickly pick it up after that so my session was not affected. He was great at simulating an actual interview environment and asked great question tailored to me in real time. He was also very very very helpful with the actionable steps that he outlined during the last 5 minutes of our call. I am currently in the process of booking another session with him to make sure my technicals are absolutely bulletproof.”

Class of '22 Oct 2026 Cohort

4.63/5

Investment Banking Full Resume Review

“Jeppe was a great reviewer to work with. He took the time to understand my background properly before making any changes, asked thoughtful questions, and helped me present my experience far more clearly and convincingly. He was honest and practical in his feedback, responded quickly, and kept the process moving smoothly from start to finish. He also shared useful perspective on the job market and where to focus next. I would highly recommend him to anyone looking to strengthen their CV. Also very responsive.”

See All 11,122 WSO Academy Reviews

1 Comments

WSO Monkey Bot

O

6y

Ut eos nihil tempore. Quo corrupti velit blanditiis. Facilis aperiam maxime iste qui ducimus. Odio ut est repellat. Velit modi est harum dolores numquam. Velit nisi iste et voluptatem et dolore omnis modi. Vero ducimus expedita laborum dolore eaque culpa.

Quo ut quidem iure. At nostrum explicabo nemo quo harum voluptatum. Minus quae in nobis cum impedit excepturi. Dolores tenetur aut sint ipsa. Et modi eos possimus quam error nulla. Et ipsum doloribus libero veritatis tenetur temporibus. Cumque velit omnis quod adipisci inventore ipsum blanditiis. Ipsam adipisci dolores corporis consequuntur et.

+138	UBS Catastrophic Q1-Q3 26, M&A -17%, Outside Top 10 in Americas, EMEA & APAC	38	1h
+60	PWP acquisition by Piper cancelled	23	3h
+46	No return offer - UPDATE.	12	58m
+29	Evercore poaches Baird DC Defense Team	18	21h
+22	Best Houston Banks for Culture in 2026	15	41m
+21	Normal for lateral process to go +2 months?	4	1d
+18	Lack of talent in IB!	19	9h
+17	Internal lateral from coverage to M&A (focused on coverage)	4	22h
+15	How standard is weekend work in IBD?	7	4h
+15	Discussion Transaction Experience in Lateral Interviews	3	3d

1	redever	99.2
2	kanon	99.0
3	Secyh62	99.0
4	BankonBanking	99.0
5	dosk17	98.9
6	GameTheory	98.9
7	DrApeman	98.9
8	Betsy Massar	98.9
9	CompBanker	98.9
10	numi	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Private Equity - Equity Issuance (Minority Investment) instead of raising debt for acquisitions

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Private Equity - Equity Issuance (Minority Investment) instead of raising debt for acquisitions

See All Comments - 100% Free

Trending Content - Investment Banking Forum