Raising Capital & Private Equity Financing in Toronto, Ontario
Raising capital is essential for businesses in Toronto, the Greater Toronto Area (GTA), and across Ontario that are looking to scale, acquire assets, expand operations, or restructure. Equity financing allows companies to secure growth capital while aligning investors with the long-term success of the business.
Equity Financing from Founders & Shareholders
Many early-stage companies in Ontario and the GTA begin by raising capital from founders and existing shareholders.
This approach:
- Allows companies to bootstrap growth
- Maintains full ownership control
- Avoids early dilution
- Fund operations before seeking outside investors
Founder capital is often used to establish foundational operations, secure initial market traction, and position the business for larger financing rounds.
Private Equity Investment in Toronto & the GTA
Private equity firms in Toronto and Ontario invest in privately held companies in exchange for ownership interest.
Private equity financing offers more than capital. Firms often provide:
- Strategic business development
- Board and governance direction
- Operational support
- Performance and growth insights
This makes private equity a preferred option for companies aiming to accelerate growth, improve systems, or enhance enterprise value.
Private Placements (Ontario & Canada)
Private placements allow companies to offer securities to accredited investors without undergoing a public securities offering. This is common in Toronto, Ontario, and throughout Canada.
Private placements are often used to:
- Fund acquisitions
- Finance business expansion
- Strengthen working capital
- Support restructuring
Because these offerings are exempt from full public filings, they are often faster and more cost-efficient than going public while still providing access to significant capital.
Mezzanine Financing (Hybrid Debt + Equity)
Mezzanine financing is a hybrid model that sits between senior debt and common equity in the capital structure.
Mezzanine financing may include:
- Subordinated loans
- Preferred equity
- Convertible instruments
This type of funding is ideal when traditional lending does not fully cover capital requirements. It is commonly used in:
- Acquisitions
- Growth initiatives
- Management buyouts
- Expansion projects
Businesses in Toronto and Ontario often turn to mezzanine financing to bridge funding gaps while minimizing ownership dilution.
Legal Support for Private Equity & Capital Raising in Ontario
Raising capital requires compliance with securities regulations in Ontario and Canada, as well as careful structuring to protect both the business and investors.
Kalfa Law Firm assists with:
- Term sheets
- Investor negotiations
- Subscription agreements
- Private placement documentation
- Shareholder rights and protections
- Deal structuring
- Regulatory compliance
Our corporate lawyers work with companies, founders, private equity firms, and investors across Toronto, Mississauga, Brampton, Markham, Vaughan, Durham Region, and the broader GTA to ensure transactions are secure, compliant, and strategically sound.
Link internally to pages such as:
- Corporate & Commercial Law
- Business Financing & Secured Lending
- Shareholder Agreements
- Mergers & Acquisitions
Secure the funding your business needs with the right legal protections in place.
Contact Kalfa Law Firm today to speak with a corporate lawyer about:
- Private equity financing
- Private placements
- Founder capital
- Mezzanine financing
- Raising business capital in Toronto or Ontario
