Debevoise and Plimpton has formalised its work in hybrid capital through a dedicated practice, bringing together lawyers advising sponsors and issuers on financing structures that combine debt and equity.
The firm announced on 22 October that the practice will be co-led by partners Ryan Rafferty and Morgan Hayes, drawing on expertise across its finance, capital markets, M&A, insurance and private equity teams.
Hybrid capital encompasses a range of financing structures, including preferred equity, credit, venture capital and special situations funds, alongside institutional investors, insurance companies and corporate issuers.
The move formalises the firm’s existing expertise in the area, with the practice bringing together specialists to address the financing, corporate, governance and tax considerations involved in complex capital structures.
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.”
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.”
