A modern financing solution that helps businesses generate shareholder returns through strategic debt, not equity dilution or exit.
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.
increase in institutional loan volume from dividend recaps from 2023 – 2024*
recap payouts totaling $80.4 billion in 2024, marking the highest rate since 2021**
*Middle Market Growth, an ACG.com production
**Themiddlemarket.com
A dividend recapitalization is a financial strategy where a company takes on new debt to pay a dividend to shareholders—typically private equity sponsors or founders. It’s commonly used to return capital without selling equity, enabling owners to realize value while the company continues to grow.
This recapitalization approach is often executed when the business has strong cash flow, valuable assets, and a clear path for continued performance post-transaction.
Have more questions? Our experts are here to make funding simple, clear, and stress-free.
Meet Our Experts
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.
It’s a financing strategy where a company takes on new debt to pay a cash dividend to shareholders—offering liquidity without a sale.
Private equity firms, founder-led businesses, and mature companies with strong cash flow often use dividend recaps to unlock value without an exit.
No. It allows shareholders to access capital without issuing new equity or changing ownership percentages.
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.
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.
The goal is to keep the business running as usual while rebalancing the capital structure. Strong operational health is critical for success.
