Investment structure for long-term HoldCo

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June 10, 2025

by a searcher from London Business School in Singapore

Hi - I'm starting a long-term HoldCo search in Singapore / South-East Asia. Market context is that debt leverage on transactions is typically limited to ~20-30% from seller financing and thus, step-up won't have the same effect as it does in the US. Couple of questions: 1. What interesting deal terms have you seen work with investors and which types of investors? I'm currently thinking of doing a carry model plus some dividends after Year 3 or 4 for some liquidity. Thoughts? 2. Do HoldCo's typically raise more money for additional acquisitions? If so, do I need to put any additional protections/clauses for investors? Would love to speak to anybody who has done one!
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Reply by a searcher
from University of South Florida in Chicago, IL, USA
Happy to discuss what our team is currently working our way through in light on dilution issues and loan optionality. Feel free to DM me
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Reply by a searcher
from Harvard University in London, UK
Thanks ^redacted‌ for the tag. ^redacted‌ - quick thoughts 1. Regarding investment, there is a difference b/w debt and equity partners. On private debt side, there is a lage variance in deal terms/ structures availble - but I guess it is market specific. In UK flexibility with debt grows as your size/ track record improves. 2. If you want to do multiple acquisitions - it's best to get investos on-boad who are aligned with this strategy and are willing to invest in future deals (or at least not block it). In my experience traditional search investors don't like holdco structures (and for good reason). So it's hard to keep your feet in two boats (search and holdco)
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