Capital Advisory · Raise capital
Raise growth capital without selling the business.
REGAL 3 Capital Advisory raises debt and equity for established companies — from institutional funds, high-net-worth individuals and corporate companies. We are the advisor. The capital comes from the network.
Most owners who come to us are not trying to exit. There is a plan that needs more money than the business can generate on its own — an acquisition, a facility, a new market — and they want to fund it without giving up control of what they have built. What is available, on what terms, and at what cost in ownership depends almost entirely on how well the business is prepared before anyone is approached. That preparation is the work.
Debt or equity
Debt, equity, or a structure between them
The instrument follows the objective, not the other way round. Before anyone is approached we settle what the shareholders actually want: how much ownership they are willing to release, what the money is for, what it has to return and by when, and what conditions make the outcome a success. Debt leaves ownership intact and imposes a schedule. Equity brings a partner, a valuation and dilution. A good many raises end up using both. Those answers decide which funders are worth approaching at all, so they come first.
The sources
Where the capital comes from
REGAL 3 is more than a funding conduit. We specialize in procuring capital for growing companies by leveraging our network of institutional funds, high-net-worth individuals and corporate companies, and we draw on a wide array of industry experts who contribute expertise and contacts to each engagement. What we add is the judgment about which part of that network to approach, and a business prepared well enough to be taken seriously when it is.
Our advisors are not brokers. They are paid for their time and skill, which is what makes that preparation possible, and they manage a team of specialists — analysts, accountants, tax specialists, market researchers — around each engagement. We are a mid-market corporate finance partner, and we are selective about who we take on.
- US$50M–$500Mtransaction focus for M&A and capital raising
- 0%of the division’s work is business asset sales and funding
- 0countries in the Cross Border Associates network300+ associates
What funders need
What a funder has to be able to see
We are selective, and so are the funders we introduce. Before a business goes out for capital, it has to be able to show four things.
- TransparencyThe numbers, the obligations and the risks are on the table, and they hold up when somebody else examines them.
- Profitability, or a realistic plan for itEither the business makes money, or there is a credible and evidenced route to it.
- Professional, competent managementPeople who can run what the capital is going to build.
- A strategic market advantageSomething this business has that a funder could not simply back somebody else to copy.
A business that falls short of one of these is not usually disqualified. It is unprepared, and that is fixable — better found by us than by a funder.
The analysis
The analysis comes first
Every capital raising client undergoes a mandatory business analysis. It culminates in a substantial report that serves as an objective snapshot of the business, with recommendations management can act on. If the business does not qualify for our services, the report is still yours and still worth having.
- Risk
- Organizational
- Operational
- Financial
What follows depends on what the analysis finds. Preparation can include legal structuring, valuations, market research, business plans and financial projections — the same logic as preparing a house for sale. The better the preparation, the more likely the raise completes on the terms you wanted. Where it is warranted, REGAL 3 can also manage the venture’s operations during the engagement so that the company’s administration and ethics are upheld; that is the interim work described under business turnaround.
Future value
Future value, priced now
Owners of businesses with real growth ahead of them have a particular fear: that an offer will be based on historic or current profit and that everything the business is about to become counts for nothing. A financial forecast answers it. Typically a three-to-five-year projection, it is a way of realizing future performance value now, based on the projected profitability of the business — and it is the document most often missing when an owner tries to raise capital alone.
Capital raising is often an alternative to, or in addition to, an M&A strategy. If what you are really weighing is a partial or full sale, start with selling a business — the preparation overlaps almost entirely.