Definition for : Bridge equity

Bridge Equity is Equity contributed by financing banks in order to help a LBO fund to close a deal. This Equity is normaly sold on to other Investors by the lending banks after the LBO deal is completed. It allows LBO funds to close the deal without having to wait for other Equity partners to join it. On this kind of deals financing banks take an underwritting Risk on the Equity.
(See Chapter 45 Mergers and Demergers of the Vernimmen)
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