Benefits to Management: The Line of Equity™ funding structure allows management to remain focused on growing its business rather than be distracted by a continual need to find investors and raise money. This funding structure also protects the company’s access to funding during disruptive events in the capital markets and allows management to adjust its business plan, as appropriate.

Benefits to Pine Brook and Its Investors: The Line of Equity™ funding structure can change an investment’s risk/reward profile. At the commencement of an investment, when the business risk – the risk of execution – is highest, Pine Brook invests a relatively small amount of equity. As the investment matures and the business risk is reduced, Pine Brook is able to invest additional capital into the growing business.