Capital Markets Support

All companies need to understand the capital markets, and how their business integrates with both the public and private markets. Both markets require the development of a plan, which integrates capital needs with value inflection points, alternative outcomes and the related company strategy. Much of the work is completed as part of the strategic plan; a capital markets strategy, however, also incorporates the story or company pitch, which articulates why an investor would be interested in an investment and when. But, as the capital markets change, the strategy must accommodate those changes.

Capius has developed capital markets strategies for multiple companies. We have worked extensively with investment bankers on IPOs, M&A and trade sales. We have raised money in PIPE transactions, public transactions and complicated, cross-border debt transactions. Further, we have significant experience with buy-side and sell-side analysis and work with clients in developing and presenting the company pitch for various capital markets presentations (e.g. JPMorgan, Bio, etc.).

Case Study

Capius worked with a private, development-stage specialty pharmaceutical company to develop a capital strategy sufficient to fund the company from clinical development, through product launch to positive cash flow. The company had been successful in clinical trials to-date, but the funding requirements exceeded the capabilities of its existing shareholder base.

We initially worked with management and the commercial team to clarify the market opportunity and the company’s strategy to address it. From this, we developed multi-year cash flow requirements, including possible alternatives using various clinical and regulatory outcomes and requirements. We worked with several banks to examine alternative financial strategies, including capacity of alternatives, timing, legal issues and the company’s plans, etc. We arrived at an approach, which utilized a combination of both debt and equity. Furthermore, we developed the company pitch, which was focused on the value drivers to the financial markets. Our approach minimized shareholder dilution, utilizing venture debt as bridge to the public market. We negotiated and finalized the transaction with well known, sophisticated lenders.

The investors ultimately realized a nearly three times return on their investment, with the bulk of the investment within three years of their potential exit despite significantly impaired capital markets from 2008 until today.