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?
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