Capital structure comparison

Project Adventus — interactive model comparing equity fund, bond issuance, and tranched hybrid

Equity fund

Equity fund

Raise capital from investors who share in returns. You earn management fee + performance fee. Investors absorb downside.

£100m
14.0%
1.50%
15%
6.0%
£1.50m

Scenarios

Bond issuance

Bond / note issuance

Issue fixed-coupon notes via SPV. You pay investors a fixed rate and keep everything above it. Full upside, full downside.

£100m
14.0%
7.00%
£1.20m

Scenarios

Tranched hybrid

Tranched hybrid

CLO-style: issue senior + mezzanine notes, hold equity tranche yourself. Leverages your capital 5-7x. First-loss risk.

£100m
14.0%
60%
5.50%
25%
9.00%
£1.20m

Scenarios

Head to head — at current assumptions

Your income by structure — good year

Your income across scenarios