Equity Kicker

An equity kicker is a financial term used primarily in investment and lending. It refers to an additional benefit or incentive given to investors or lenders, allowing them to gain a share of equity in a company along with their standard returns. This means if the company does well financially, they not only receive interest payments or principal back but also a portion of the company’s profits or value growth. It’s a way to align the interests of lenders or investors with the success of the company, encouraging better performance and potentially higher returns.