There are several "options" on the menu of possible tools in the private investment/private finance world, among them:
- common equity
- common equity with rights or warrants for specific voting rights or privileges
- debt instrument (interest only, or amortized)
- debt instrument with an equity component (stock in lieu of principle or fraction, etc.)
- preferred equity carrying a dividend with a fixed formula
- joint venture cash-flow model (with any number of provisions such as stock in lieu of principle repayment, or longer terms, etc.)
- consulting agreements
- advisory board participation agreements
All of these things and innumerable combinations of them are possible components of a potential deal.
