The equity capital markets term refers to the interactions between entities requiring funding and those financial institutions that can assist with this search. The financial institutions act as facilitators to raise capital on behalf of their clients from the investment community. These entities may provide advice on a broad range of fund raising alternatives, including convertible debt, preferred stock, warrants, private placements, and the use of an initial public offering. Other entities are more specialized, concentrating their resources in a small number of areas of expertise.
Equity capital market advisors can assist an entity that is seeking equity funding in all aspects of this search, including the development of a prospectus, improving the valuation of shares, marketing the prospective equity sale to investors, syndicating the sales among other entities, and distributing the shares.