Meaning & use

equity kicker

noun·Advancedbusinessfinance

Last updated

UK/ˈekwəti ˌkɪkə/
US/ˈekwəti ˌkɪkər/

Meaning

  1. nouncountablebusinessfinance

    an extra benefit, often shares or the right to buy shares, added to a loan to make it more attractive to the lender.

    Grammar: Countable: use 'an equity kicker' for one, 'equity kickers' for more than one.

    Patterns

    • an equity kicker on a loan
    • include an equity kicker
    • offer someone an equity kicker

    The bank agreed to lend the money only if it received an equity kicker in the form of shares.

    Investors liked the bond because it came with an equity kicker that could rise in value.

    The startup offered an equity kicker to its main backer as a reward for taking extra risk.

Word forms

pluralequity kickers

Common combinations

an equity kicker on a loan
The lender negotiated an equity kicker on the loan.
include an equity kicker
The financing package includes an equity kicker for the investor.
offer an equity kicker
They offered an equity kicker to attract more capital.

Synonyms and how they differ

sweetener
A general word for anything added to make a deal more appealing; an equity kicker is a specific financial sweetener tied to shares.
warrant
A warrant is the right to buy shares at a set price; an equity kicker may take the form of a warrant, but it can also be direct shares.

Commonly confused: equity kicker or equity?

equity kicker vs equity

Equity is the general term for ownership value; an equity kicker is a particular extra benefit linked to equity, not equity itself.

Practice

The venture capitalist asked for an equity kicker ___ the loan.

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