Infrastructure Finance

Fact: Drive across the country, or even around the block, or take local public transportation almost anywhere and it is clear that the need for infrastructure investment is at an all time high.  In the US alone it is estimated that $4 trillion needs to be invested over the next ten to fifteen years. $4 Trillion! And every year that number is growing.

Problem: The recent financial crisis has had a significant impact on the traditional sources of capital to fund these investments. In the private sector, there has been a meaningful contraction in the number of global financial institutions that historically have provided this infrastructure project financing. Those that remain are tightening credit criteria as they try to repair balance sheets strained by the crisis, leaving behind an increasing number of extremely attractive small to mid-sized projects that are looking for financing outside of the banking sector. In the public sector, across the spectrum Federal, State and Local budgets are being cut.

Solution: Think to this analogy…15 years ago 80% of all cars were purchased and 20% were leased. Today it’s the exact opposite: 80% of cars are leased because no one wants to tie up their capital. Don’t own assets and tie up crucial capital, just pay to use them.

Our approach is simple and elegant: tap into our clients’ under-recognized fixed assets and physical plants to provide low-cost capital…quickly. It’s a win-win…our clients retain ongoing use of their critical fixed assets and we help monetize them, largely through off-balance sheet structured financings.

Bridging the funding gap…In many instances we have been able to achieve 100% financing for the total cost of the project. For private sector new build transactions, this reduces the required equity contribution and significantly improves over-all returns to the developer. For public sector deals, this can eliminate the need for new bond issuances to fund desperately needed capital projects.

Who are our clients?

Simple…nearly any company, state or local government that currently has “equity” in their assets and is seeking creative structured or project financings.

While our financial solutions have broad applicability, we have particular expertise in power and related projects, water, infrastructure, and large real estate projects. Examples of current transactions we are working on include the off -balance sheet financing of 100% of a new gas fired generating facility for a regulated public utility; the financing of a new water treatment facility in the southwestern US; the construction of a sports/entertainment complex in a major metropolitan market and the financing of a new renewable energy facility in the Northeast.