Meaning & use
equity kicker
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Meaning
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
| plural | equity 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
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.
Choose one answer.
'On' is the usual preposition after 'equity kicker' when talking about a loan. 'In' might seem possible, but 'an equity kicker on a loan' is the standard phrase.
Make it your own
Write a sentence using “equity kicker”, then check it and compare it with the examples above.