Preference shares are a unique “hybrid” instrument—offering the fixed-income nature of debt with the balance-sheet characteristics of equity.
We help companies use preference shares to raise capital without granting voting rights, making it an excellent tool for founders who want to bring in investment while maintaining operational control.
Generally, no. This allows founders to raise capital without losing control over day-to-day decisions.
Depending on the terms, they are often treated as “quasi-equity,” which can actually improve your debt-to-equity ratio in the eyes of bankers.
Yes, Compulsorily Convertible Preference Shares (CCPS) are a favorite among VC and PE investors.