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Financing Transactions and Raising Private Capital

Every business owner wants to see their company grow in revenue and scope. There are myriad tools and strategies to accomplish this, such as raising private capital through debt, equity, or a mixture of both. Understanding how each available tactic works and how to mitigate the risks associated with them, such as SEC regulatory requirements, investor liability, and financial risk is crucial to a successful capital raise. At the Scarinci Hollenbeck, LLC, our approach is to structure our clients’ capital raises to maximize benefit while mitigating risk in the short, medium, and long term. We guide clients through the process as smoothly as possible.

One method of capturing market share and increasing your company’s profit margin is by issuing a private placement. Regardless of the size of your company, private placements allow you to access long-term, fixed-rate capital and diversify your financial portfolio. This approach helps you extend your reach beyond the typical investors available to you, further diversify your financial sources, and add financing capacity to your venture. There are many types of private placements and each presents different challenges and opportunities. For example, Crowdfunding under Regulation CF allows a company to receive investments from unaccredited investors without engaging in an initial public offering (IPO). However, there are lower limits as to how much capital can be raised as compared to a Regulation D or Regulation A/A+ raise.

Scarinci Hollenbeck, LLC also regularly handles credit and project financing, whereby a company can employ leverage to access the capital it needs to rise to the next level in its business. Depending on the client’s balance sheet, available assets, and corporate structure, our attorneys assist clients in taking a calculated risk in one area without causing significant risk to other aspects of their business and their bottom line.