Teamshares Secured $225 Million in Preferred Equity
The firm will use this capital to fund acquisitions while keeping common stock ownership intact.
Updated on Sept. 23, 2026 in Corporate Finance
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Teamshares has closed a $225 million Series A perpetual preferred equity investment to fuel its strategy of acquiring small and medium enterprises. The financing provides the company with capital for growth and refinancing existing debt without diluting existing common stock ownership.
Why it matters
By utilizing preferred equity rather than additional common stock, Teamshares preserves equity control and maintains capital flexibility as it pursues an acquisition strategy. This structure allows the firm to scale its portfolio through debt refinancing and new enterprise acquisitions.
Teamshares raised $225 million in preferred equity, carrying a 16% annual cash dividend rate that can step down to 14.5% if specific EBITDA and deleveraging benchmarks are met. The firm reported consolidated revenue of over $500 million for the period ending June 30, 2026.
The players
Teamshares
A New York-based firm that focuses on the acquisition and operation of small and medium enterprises.
T. Rowe Price Investment Management
A global asset management firm that advised the accounts participating in the investment.
Goldman Sachs
A multinational investment bank that acted as the exclusive financial advisor for the transaction.
The details
The investment was structured as non-voting, non-convertible preferred stock, senior to common shares but junior to existing debt. Teamshares maintains the option to pay dividends in-kind at a premium, and investors hold a redemption right beginning seven years from issuance. Goldman Sachs served as the exclusive financial advisor for the transaction, with T. Rowe Price Investment Management advising the participating accounts.
Timeline
June 30, 2026: Teamshares reported consolidated revenue exceeding $500 million.
September 23, 2026: The $225 million preferred equity investment was officially announced.
2026-2027: The company is targeting these years for continued acquisition growth.
Seventh anniversary of issuance: Investors may require redemption of the preferred stock.
Market Landscape
This transaction reflects a strategic shift toward utilizing high-coupon preferred equity to fund enterprise acquisitions while maintaining equity control. The structure positions the new shares in the standard corporate capital structure hierarchy between debt and common equity.
Operators looking at acquisition-led growth models should note that this structure uses high-cost preferred equity to avoid common stock dilution. Management should track the 16% dividend hurdle and the impact of the 1% original issue discount on their effective cost of capital.
The takeaway
This deal highlights the trade-offs of using expensive, non-dilutive capital to support inorganic growth. Business owners evaluating similar financing should analyze the potential cost savings of the 14.5% dividend step-down provision against the risk of mandatory redemption in seven years.
Further reading
For more on capital structure trends, visit Corporate Finance.
More information
View the latest financial documents on the Teamshares investor relations website.
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