Further compounding this is the fact institutional investors are typically far larger and more consistent clients of the investment banks than any single corporate issuer. The conflict also requires the banks to secure expansive indemnification from issuers against any perceived legal or fiduciary obligations, as well as any potential claims of reliance upon them regarding terms, risks or conditions of the financing. (The latter is particularly ironic given that it is often a bank’s specific expertise with a financial product or structure that secures its mandate in the first place.)

Recognizing the weakness in this construct and disadvantaged position in which it places companies gives rise to an important question – How might issuers close the know

ledge and experience gap between them and their deal manager(s) and counter any potentially unfavorable impacts of the banks’ conflicted position to meet their obligations to shareholders.

At Aequitas, we believe it is incumbent upon officers and directors to approach securities offerings from an informed, engaged perspective. We put our decades of product expertise and bank-side sales/trading and deal structuring/execution experience to work on behalf of corporate clients to close this experience “gap”, preserve leverage and secure superior outcomes.