Global Market Experience
USA & Canada
Latin America & Caribbean
Finance Package Preparation
When funding sources are initially interested in a project, they have significant requirements in order to conduct their due diligence. They expect to review a detailed document showing the business rationale, market or negotiated support for revenues underpinning the returns profile for debt or equity injected in the project, and detailed backup for the various capital cost and expense projections in the proforma. Some project sponsors approach us and already have such a package ready for our funding sources. Most do not and we can help. Part of a finished package includes clarity on the funding or partnership deal itself - the starting point for negotiations. Sapien Enteprises can handle all of this work for you, working closely with you and your team.
Funders also need to see the documentation substantiating what is firm or speculative in the project. This applies both to various types of numbers, but also to other key project representations. These include documents that prove control of the project entity, control of land, encumbrances against the project or the lack of encumbrance, existing studies, contracts, proposals, and other agreements, physical verification of the site as well as independent verification of all jurisdictional offices and relevant governmental personnel who have responsibility for the land and its use. Sapien Enterprises handles this as well as part of our financial package services. This initial work usually takes from 4 to 6 weeks to complete.
In the early project stages, the main profile for capital infusion are the equity players. Some of them are sufficiently liquid that they will also participate on the debt side, but understanding the equity returns requirements and project appetite as to project stage, geography, and project type is critical to reach the point of negotiating term sheets for early funding. We leverage our network of proven funders as well as existing potential investors your team is working with in order to create momentum towards funding for the next stage.
It is never too soon to begin the work of positioning the major construction or acquisition finance. As the capital stack for a project is assembled, the activity of potential and existing early funders lends both credibility to the project and justifies the time that our major debt finance entities must invest in reviewing the project for potential finance for construction, or to take the construction loan out and provide long term debt facilities to the project. Our firm understands the importance of working to meet funders' requirements on all fronts simultaneously both to create a sufficient competitive market for the project for each funding stage and type of capital infusion, but also because funders prefer to work projects where other credible entities are involved in a given time frame throughout the development process.
Project Development & Execution
Once capital infusion is successfully obtained and project land is controlled, there is a significant amount of soft cost incurred in order to get your project "shovel-ready", with all the design and market work done, and all the construction documents, permitting, and entitlements in place.
Representing the interests of the owners, we are ready to undertake this management and coordination in a longer term engagement. We identify and work with the most appropriate architectural firms, market study consultants, technical consultants, land planners, operations management companies, legal and tax professionals, as well as helping negotiate off-take agreements such as tenant leases, and working with general contractors and both construction and long term finance sources in order to finalize the project financial structure and achieve financial close and start of construction.
Contact us today for a complimentary review of your project.
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