What's the Biggest Mistake CFOs Make When Raising Debt?
The biggest mistakes CFO's and CEO's make when looking to raise capital? Meghan Daniels from Axial recently asked Jeff Pfeffer, Managing Partner at CapX Partners, to share his thoughts on this topic in her recent article, along with representatives of BBVA Compass, GemCap Lending and Capital One Healthcare. Click here to read the entire article.
“Often CFOs and CEOs focus on the cost of their debt capital as being the most important attribute to achieving an optimal capital structure. Middle market businesses often come with a basket of risk-altering criteria including customer concentration, high fixed charges/debt service, commodity price fluctuations, and capital expenditure decisions, to name a few. Knowing your debt provider and constructing a debt agreement that best supports the unknowns that can impact your business can be just as important or more than the price of the debt.” -Jeff Pfeffer, Managing Partner, CapX Partners
In 1999, Jeff co-founded CapX and is the firm’s Managing Partner. His responsibilities include firm management, leading new business development, and serving as CFO for CapX.
Jeff has over three decades of small to midsize business finance experience focusing on delivering superior risk-adjusted returns to CapX’s investors. He co-founded the firm during an investment vintage when alternative secured financing strategies were deemed not “sexy.” He and his partners raised over $450...