Hybrid Capital
topic on 2 shows · 4 statements across 3 episodes
the a16z Podcast 
Capital Allocators
4 statements about Hybrid Capital, every show
Marc Rowan: Hybrid capital is Apollo's fastest-growing business
“We call that hybrid for us. That's our fastest growing business.”
Lyon: Distressed debt investors have rebranded themselves as capital solutions
“More and more distressed guys have pivoted to brand themselves capital solutions. Cap solutions is just hybrid capital. That's all it is. You're don't fit in a box. Traditionally, you're neither just first lien debt or equity.”
Lyon: Giving private equity counterparties extra negotiation time guarantees you will lose
“If you give them enough time, you will lose. Every time you will lose, they will take your face and drag you through the mud and make you eat the mud.”
Khajuria: Hybrid capital offers top risk-adjusted returns at 15% IRR
“So right now, one of the best risk returns is in what I call hybrid capital, or some firms call it tactical opportunities, or things that have a lower possibility of default, right? The chance of losing money is lower, and perhaps you give up a bit of upside. …”