DIVIDEND RECAPITALIZATION

Smarter capital strategies for owners ready to realize value

A modern financing solution that helps businesses generate shareholder returns through strategic debt, not equity dilution or exit.

LET’S TALK

We’re a dynamic, speciality finance partner helping business owners unlock value without giving up control.

We deliver fast, strategic capital by leveraging your receivables, inventory, and equipment—not just traditional credit metrics. When a full exit isn’t the goal, our asset-based solutions create shareholder liquidity, preserve ownership, and provide the financial flexibility to keep your business growing.

Dividend recapitalizations are rapidly gaining traction among middle market businesses

500

increase in institutional loan volume from dividend recaps from 2023 – 2024*

103

recap payouts totaling $80.4 billion in 2024, marking the highest rate since 2021**

*Middle Market Growth, an ACG.com production
**Themiddlemarket.com

DIVE DEEPER

Here’s what you can expect from eCapital

  • Immediate access to liquidity
  • Streamlined applications, fast decisions, and predictable access to funds.
  • Solutions that adjust as your cash flow or working capital needs change.
  • Flexible, non-bank options that are asset-driven, not credit-score-driven.
  • Financing based on the value of your receivables, inventory, or assets—not based on rigid financial ratios.
  • Discreet, behind-the-scenes funding solutions that allow you to operate normally.

ABOUT US

Our mission is to become your long-term financing partner

Clients choose eCapital when they need an engaged, solutions-oriented, long-term credit partner with proven capacity, creativity, and continuity. Our expertise is customization—whether on a $5 million or $150 million facility, employing a meticulous, hands-on strategies.

Our tight-knit group of financing experts are agile and client-centric, yet backed by extensive resources with the scale to conquer any challenge. This means we are going to be a better credit partner through every business cycle, bringing capabilities and passion—as patient, flexible problem-solvers—other providers simply do not have. Our track record speaks for itself.

Fast facts
19
YEARS FUNDING BUSINESS SUCCESS
42
CLIENTS FINANCED
VIEW OUR LATEST PARTNERSHIPS

LATEST TRANSACTIONS

Have a look at some clients we’ve helped in our latest transactions

SEE MORE TRANSACTIONS
$6MM

$6MM in Growth Capital from eCapital Enables Midwest Logistics Firm’s Expansion Plans

eCapital has delivered a $6 million accounts receivable facility to accelerate the trajectory of a Midwest-based logistics company. Referred by a comm. . .
AR FINANCING
$750K

$750K Freight Factoring Facility Supports Canadian Transportation Company’s Growth

A Canadian transportation company secured a $750K freight factoring facility from eCapital to improve working capital and fuel continued growth. The c. . .
FREIGHT FACTORING
$500K

$500K Payroll Funding Facility to Bridge Cash Flow Gaps for Growing Canadian Staffing Firm

A growing staffing firm specializing in labor services for large infrastructure projects across Canada needed a flexible working capital solution to m. . .
PAYROLL FUNDING
SEE MORE TRANSACTIONS

Frequently asked questions
about dividend recapitalizations

What is a dividend recapitalization?

It’s a financing strategy where a company takes on new debt to pay a cash dividend to shareholders—offering liquidity without a sale.

Who uses dividend recap strategies?

Private equity firms, founder-led businesses, and mature companies with strong cash flow often use dividend recaps to unlock value without an exit.

Does dividend recap dilute ownership?

No. It allows shareholders to access capital without issuing new equity or changing ownership percentages.

Is it risky to add debt just to pay dividends?

It depends on the company’s ability to service the debt. Dividend recaps are best suited for businesses with strong cash flow, stable margins, and predictable revenue.

How is the debt structured?

It’s typically asset-based or cash-flow-based, and may include term loans, revolving credit facilities, or mezzanine financing—customized to match the company’s needs.

Will the recapitalization affect daily operations?

The goal is to keep the business running as usual while rebalancing the capital structure. Strong operational health is critical for success.

Ask an Expert

We’ve got a team of financing experts available to answer any questions you may have about dividend recapitalization.
GET STARTED TODAY

Looking to learn more about dividend recapitalizations?

Read our article Navigating the Waters of Asset-Based Lines of Credit: A Strategic Guide for Growth

Learn more about dividend recapitalizations

The Rise of Dividend Recapitalization: Unlocking Shareholder Value Without Giving Up Equity

Business owners and private equity firms are continuously seeking smarter ways to access capital and unlock shareholder value. . .
Read More