Construction is likely to be one of the most dynamic industrial sectors in the next decade and is utterly crucial to the evolution of prosperous societies around the world.
A construction project cannot proceed without adequate financing, and the cost of providing adequate financing can be quite large. For these reasons, attention to project finance is an important aspect of project management. Finance is also a concern to the other organizations involved in a project such as the general contractor and material suppliers. Unless an owner immediately and completely covers the costs incurred by each participant, these organizations face financing problems of their own.
Plans considered by owners for facility financing typically have both long and short term aspects. It is customary to have completely different financing arrangements during the construction period and during the period of facility use. During the latter period loan funds can be secured by the value of the facility itself. Thus, different arrangements of financing options and participants are possible at different stages of a project, so the practice of financial planning is often complicated.
Through our depth of experience in this dynamic space, we look to tailor solutions specific to the complex needs of our clients including:
- Mezzanine Debt: Investing in mezzanine debt that yields attractive risk-adjusted returns.
- Recapitalizations: Recapitalization opportunities involving highly valued assets financed with excessive leverage that require restructuring or recapitalization.
- Legacy Debt Investments: With lenders looking to reduce debt positions we expect to invest in legacy debt instruments on a discounted basis.
- Listed Equity and Debt Securities: Investments in public debt securities based on fundamental value-oriented research
- Preferred Equity: Investments in preferred equity investments associated with the acquisition, development and recapitalization of real estate opportunities
