SPECIAL SITUATIONS FINANCING
When conventional financing isn’t enough.
Aparti Capital advises business owners, investors, and management teams on structuring and sourcing capital for complex transactions, challenging credit situations, and businesses navigating financial or operational transitions.
SPECIAL SITUATIONS CAPITAL ADVISORY
Complex situations demand disciplined capital solutions.
Not every financing requirement fits a conventional credit model. A business may face uneven performance, a complicated ownership structure, concentrated collateral, a lender transition, or a transaction that requires an unconventional capital solution.
We begin with the underlying economics and the specific constraints. The objective is to determine whether a viable financing structure exists, what risks it creates, and which capital providers may be suited to the situation.
01
Underlying Economics
Evaluate normalized cash flow, liquidity, asset coverage, and the ability to support new capital through different operating scenarios.
02
Existing Obligations
Review current debt, maturities, liens, covenant constraints, and the priorities of existing stakeholders.
03
Collateral & Recovery
Assess receivables, inventory, equipment, real estate, and other potential sources of lender protection, subject to independent diligence.
04
Path to Stability
Define the intended outcome, including refinancing, operational improvement, an asset sale, or a broader capital restructuring.
SPECIAL SITUATIONS CAPITAL SOLUTIONS
Financing alternatives for circumstances outside the ordinary.
We evaluate capital structures in the context of the business, its existing obligations, the available collateral, and a credible path toward financial stability or a defined transaction outcome.
Asset-Based Financing
Credit facilities supported by eligible receivables, inventory, equipment, or other assets when cash-flow lending alone may be insufficient.
Private Credit
Nonbank financing tailored to situations requiring flexibility in structure, timing, or underwriting.
Structured & Junior Capital
Subordinated debt, preferred capital, or other structured solutions where risk and repayment priorities require a layered capital stack.
Refinancing & Maturity Solutions
Capital alternatives for companies navigating debt maturities, lender exits, or a need to replace existing financing.
Liquidity & Transitional Capital
Situation-specific financing to support a defined transition, with attention to cash requirements, cost, and repayment sources.
Recapitalization Structures
Financing structures that may involve creditor negotiations, seller participation, shareholder capital, or other stakeholder arrangements.
OUR APPROACH
Complexity requires clarity before capital.
Special situations call for an independent assessment of what the business can support. We review financial performance, liquidity, collateral, existing obligations, and the objectives of owners and creditors before considering a financing strategy.
Where an actionable solution exists, we identify appropriate capital providers, assess alternative structures, and coordinate with legal, accounting, and operational advisors as needed. Some situations require stabilization or restructuring before new financing is realistic.
SITUATIONS WE ADVISE ON
Capital for businesses facing consequential decisions.
We work with businesses and transaction parties evaluating complex financing requirements where conventional solutions may be limited or unavailable.
Lender Transitions & Refinancing
Evaluating financing alternatives when an existing lender is exiting, a facility is maturing, or terms no longer fit the business.
Complex Acquisition Financing
Structuring acquisition capital when collateral, operating performance, seller participation, or transaction timing creates additional complexity.
Liquidity & Working Capital Pressure
Assessing potential capital solutions for a defined liquidity challenge while protecting the company’s ability to operate.
Asset-Intensive Businesses
Evaluating asset-backed capital for businesses with substantial equipment, receivables, or inventory but limited conventional cash-flow borrowing capacity.
Ownership & Capital Restructuring
Supporting recapitalizations and ownership changes that require coordination among shareholders, lenders, and other capital providers.
HOW WE WORK
A measured process for complicated transactions.
We approach special situations with a focus on financial reality, stakeholder alignment, capital-provider fit, and execution risk.
01
Diagnose
Understand the financing need, underlying performance, liquidity, existing obligations, and constraints affecting available solutions.
02
Underwrite
Analyze sustainable cash flow, collateral, capital requirements, downside exposure, and realistic repayment scenarios.
03
Structure
Develop alternatives that account for debt priority, pricing, covenant requirements, stakeholder interests, and transaction timing.
04
Engage & Negotiate
Approach suitable financing sources and coordinate discussions with relevant stakeholders and professional advisors.
05
Execute
Support diligence, negotiations, documentation, and closing where a commercially viable financing solution is available.
FREQUENTLY ASKED QUESTIONS
Questions about special situations financing.
What is special situations financing?
Special situations financing refers to capital solutions for businesses or transactions whose complexity, credit profile, timing, or existing obligations may not fit conventional lending standards. Structures and availability depend on the facts of each situation.
Does special situations financing mean the business is distressed?
Not necessarily. A situation may involve financial stress, but it can also arise from an unusual acquisition structure, concentrated collateral, a lender transition, or another nonstandard financing requirement.
What financing sources may be available?
Depending on the circumstances, options may include asset-based lending, private credit, structured or junior capital, recapitalization financing, or a negotiated solution involving existing stakeholders.
Can new capital solve an immediate liquidity problem?
Sometimes, but additional debt is not always appropriate. We evaluate sustainable cash flow, available collateral, financing costs, and whether the business has a credible path to repayment and stability.
Does Aparti Capital lend directly or provide turnaround management?
No. Aparti Capital is an independent capital advisor. We help evaluate financing alternatives and engage suitable capital providers; specialized legal, restructuring, and operational work may require separate professionals.
PERSPECTIVES & INSIGHTS
Perspective on complexity, risk, and capital.
Research and practical guidance on alternative financing, lender transitions, and capital structures for lower middle market businesses.
SPECIAL SITUATIONS
When Traditional Business Financing Falls Short
How collateral, cash flow, lender requirements, and transaction complexity shape the alternatives.
CAPITAL STRUCTURE
Asset-Based Lending vs. Cash-Flow Lending
Understanding how different underwriting approaches can affect financing capacity and flexibility.
REFINANCING
Navigating a Business Debt Maturity
Key considerations when an existing credit facility must be refinanced or restructured.
START A CONVERSATION
Facing a complex financing situation? Let’s assess the options.
Tell us about the business, its financing requirements, existing obligations, and the intended outcome. We will evaluate whether an initial advisory conversation is appropriate.