Dividend Recapitalisation

Looking to return capital to shareholders while optimising your capital structure? Dividend recapitalisation is a strategic solution for sponsor-backed businesses to access liquidity through debt — enabling shareholder returns without compromising operational control or future growth.

Balancing financial flexibility with shareholder distributions is a common challenge for private equity-backed companies. Dividend recapitalisation allows you to unlock value by leveraging your balance sheet effectively, while preserving the capacity to reinvest in your business.

For mid-market businesses, delivering returns and maintaining momentum requires careful structuring. While dividend recapitalisation can provide timely liquidity, it must be managed prudently to avoid over-leverage and protect future financing capacity. Evolving credit conditions, lender appetite, and sponsor expectations add further complexity.

Ensuring the transaction aligns with long-term growth and exit plans is crucial to avoid operational strain or unintended risk. 

Is Dividend Recapitalisation Right for You?

  • You are a private equity- or sponsor-backed business seeking liquidity for shareholder returns
  • Your business generates stable cash flows and can support additional leverage
  • Preserving operational control and financial agility is a priority
  • You require a recapitalisation aligned with your exit horizon and growth plans

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Understanding the Use of Funds

Dividend recapitalisation typically involves raising new debt — often through a leveraged recapitalisation — to pay a dividend to shareholders. It allows sponsors to realise returns without immediate equity dilution, enabling liquidity while the business continues its growth trajectory.

Lenders evaluate cash flow strength, credit quality, and transaction structure to determine optimal terms. A well-structured deal strikes the right balance between risk and return, preserving operational flexibility and long-term value. 

Why Work With Fuse Capital? 

Dividend recapitalisations are complex transactions. Managing leverage levels, covenant headroom, and long-term refinancing risk requires careful planning. Poorly structured deals can limit flexibility, reduce valuation, or impair future funding options.

Finding the right lender with appetite for dividend-led recapitalisations — and structuring a transaction that aligns with sponsor goals — demands specialist insight, scenario modelling, and precision execution.

Fuse Capital advises sponsor-backed businesses on strategic recapitalisation options that return value to shareholders while safeguarding future growth. We bring deep knowledge of the mid-market lending landscape, access to global credit providers, and a proven approach to deal structuring and lender negotiation. 

Why Choose Us?

As your trusted debt advisory partner, we provide the expertise and support you need to navigate the complexities of funding. Here's what sets us apart:

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Focused Exclusively on Debt

Our exclusive focus on debt advisory means we bring deep expertise to help VC, PE, and PLC-backed businesses secure the right capital efficiently.

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True Partnership, Not Just Introductions

We work closely with you to understand your business, develop the right funding strategy, negotiate terms, and support you through every stage of the process.

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Built on Real-World Experience

Having built and scaled businesses ourselves, our advice is rooted in practical experience and a deep understanding of the challenges you face.

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Results That Speak for Themselves

Trusted by over 550+ businesses across the UK, Europe and APAC, we deliver strategic insight and tailored funding solutions that drive sustainable, long-term growth.

FUNDING CONNECTIONS THAT DRIVE GROWTH

Our Portfolio Experience

Our extensive network of lenders spans across the UK, EU, and beyond, ensuring we connect you with the right funding partner for your needs. From venture debt providers to asset managers, we have the relationships to deliver results.

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Let's Talk

What Happens Next?

At Fuse Capital, we’ve been supporting businesses with strategic debt solutions since 2013. Once we receive your details, here’s what happens next:

  1. 1

    Initial Consultation

    We’ll arrange a discovery call to understand your business model, funding requirements, and growth ambitions. This helps us evaluate whether there’s a good strategic fit.

  2. 2

    Information Gathering & Review

    If we proceed, our team will work closely with you to gather key financial and operational information. We’ll conduct a preliminary review to ensure we have a clear and accurate picture of your business.

  3. 3

    Investment Committee Review

    Your opportunity is then assessed by our investment committee. We take a considered, selective approach progressing only where we believe we can deliver real value. If there’s alignment, we’ll recommend the most effective funding strategy tailored to your needs and proceed with next steps thereafter.