Debevoise & Plimpton LLP has formalized its longstanding work in hybrid capital through a dedicated Hybrid Capital practice, co-led by partners Ryan Rafferty and Morgan Hayes. The practice brings together the firm’s deep experience advising both providers and recipients of hybrid capital on sophisticated capital solutions that combine features of traditional debt and equity. Our experience includes preferred and convertible preferred equity investments, acquisition and pre-IPO financings, recapitalizations, surplus notes, holdco debt, margin loans, mezzanine financings and other bespoke capital solutions.

The Hybrid Capital practice draws on lawyers from the firm’s capital markets, finance, M&A, insurance and private equity practices, as well as tax and other specialists as needed. This multidisciplinary approach allows the team to address the financing, corporate, governance, tax and other considerations that can arise in a single transaction.

Mr. Rafferty, co-chair of the practice and a partner in the Finance Group, said, “Hybrid capital gives clients flexibility to pursue financing and investment objectives that do not fit neatly within traditional debt or equity structures. We have been advising on these transactions for years, and this practice brings that experience together so clients can access the right capabilities as their needs evolve.”

Mr. Hayes, co-chair of the practice and a partner in the Capital Markets and Finance Groups, said, “Having advised both providers and recipients of capital gives us a clear view of the objectives and negotiating dynamics on each side of these transactions. That perspective helps us structure and execute solutions that respond to complex capital structure needs.”