---
title: "What Is Minority Recapitalization? Private Equity Glossary"
description: "A minority recapitalization is a deal where an investor buys less than half of a company, so the owner keeps control and takes some cash out."
url: https://capstreet.multisites.ai/glossary/minority-recapitalization
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Deal structure

# Minority Recapitalization

A minority recapitalization is a deal where an investor buys less than half of a company, so the owner keeps control and takes some cash out.

In a minority recapitalization, the investor buys a stake smaller than 50%. You keep control of decisions and still get some cash or growth funding.

For example, an investor pays $6 million for 20% of a company valued at $30 million. The owner receives cash, keeps 80% and keeps control of the board.

This can suit owners who are not ready to step back. The trade-offs are that investors often want more protections for the smaller stake, and fewer firms do minority deals in the lower middle market. The size of the cash-out is smaller too.

Think about your goals. If you want a full partner and a larger payout, a [majority recapitalization](https://capstreet.multisites.ai/glossary/majority-recapitalization) may fit better. If you want to keep control, look at minority options and [growth equity](https://capstreet.multisites.ai/glossary/growth-equity).

Capstreet states its focus as "Primarily majority investments". Compare both paths in [majority vs minority recapitalization](https://capstreet.multisites.ai/compare/majority-vs-minority-recapitalization).

[Read nextMajority vs minority recapitalization: how much control do you give up?](https://capstreet.multisites.ai/compare/majority-vs-minority-recapitalization)

## Related terms

-   [Majority Recapitalization](https://capstreet.multisites.ai/glossary/majority-recapitalization)
-   [Growth Equity](https://capstreet.multisites.ai/glossary/growth-equity)
-   [Recapitalization](https://capstreet.multisites.ai/glossary/recapitalization)

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