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capital-formation

What does capital formation cover?

Capital formation is the process of building the equity and debt stack that closes the deal.

Capital formation covers the work required to assemble a closeable capital stack: equity commitments, acquisition debt, rollover equity, seller financing, co-investment, reserves, and any other instrument used to fund the transaction. It is the bridge between deal sourcing and post-close ownership. The sponsor has to translate a promising asset into a fundable structure with clear economics, diligence support, and closing mechanics.