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What is a Dividend Recap?

Private Equity Funcast

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The Advantages of Having a Preferential Share Structure

It could actually simplifies the ability to take money out of the investment with this slug of preferred, call it preferred. And does it also because we're going to talk about recaps here and given a recap, but does it also make it easier to do talking acquisitions having that structure? Not necessarily. That actually may complicate it in some cases,. But what it means is that when it's time for the exit, so say this mythical, you know, $25 million we put in a business and we had no debt on it, assume, say we sold the business for $50 million, what would happen would be that 23 million of preferred would be paid out plus it's a crude

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