A Recapitalization is a restructuring of a company’s capital structure, such as exchanging debt for equity, issuing new classes of securities, changing share rights, or reorganizing the cap table to address financing needs or return capital. In venture and private equity, a Recapitalization can be used to raise new money, provide liquidity through dividends, or reset preferences after a down cycle, and Recapitalization transactions often require complex consents.
