Growth debt empowers founders with non-dilutive capital, cost-effective financing, flexibility, and enhanced credibility, safeguarding their growth potential and equity.
Unlike traditional bank loans, growth debt is flexible and often structured as a hybrid instrument that combines debt and equity features.
Typical key terms would include:
3-4 year term loan
Flexible amortization
$3M+ loan amount
2-3 tranches
Warrant component
A Typical arrangement would include:
Hybrid structure blending debt and equity
3-4 year senior loan with flexible amortization
$10M average loan amount
Positive and negative loan covenants
Warrant component providing lender option to buy minimal shares upon an imminent liquidity event.
A Typical arrangement would include:
Hybrid structure blending debt and equity
3-4 year senior loan with flexible amortization
$10M average loan amount
Positive and negative loan covenants
Warrant component providing lender option to buy minimal shares upon an imminent liquidity event.
Capital Expenditure
Working Capital
Acquisition
Growth
Venture Capital
Growth Debt
Equity investment
Debt investment with warrants
Values can fluctuate
Value is primarily fixed
Returns have high variance
Returns have limited variance
Returns via liquidity event
Returns via cashflows & liquidity event
Junior on balance sheet
Senior on balance sheet
Returns driven by equity value
Returns driven by cash interest, return of principal & equity value
Venture Capital
Equity investment
Values can fluctuate
Returns have high variance
Returns on liquidity event
Junior on balance sheet
Returns driven by equity value
Growth Debt
Debt investment with warrants
Value is primarily fixed
Returns have limited variance
Returns reliant on company cashflows & liquidity event
Senior on balance sheet
Returns driven by cash interest, return of principal & equity value
Below you can calculate a founder’s equity stake savings when raising debt capital in lieu of an equity round.
FAQs
We are generally sector-agnostic and seek out technology driven companies approaching or having achieved profitability, with a proven track record of growth and a resilient business model.
Our funds can be used for various purposes, including working capital, expansion, acquisitions, technology investments, and other growth initiatives.
We provide a flexible approach, with an emphasis on tailoring to the unique needs of our borrowers. Additionally, our process is generally expeditious relative to that of traditional financiers.
Our target region is MENA with a focus on the GCC, but can selectively partner with global businesses looking to expand into our region.