Equity/JV Finance

At times, out of choice or need, there is a requirement for an investment solution by way of injection of capital into a project/company.

This will enable some or all of the equity in a scheme to be provided by an investor/third party for a return in profit. By structuring the capital stack finance to reduce developer’s risk, it means they can upscale projects.

Key Features

Equity finance should be a key component in any developer’s arsenal. We have the resources to deliver £750k – £25m to selected developers and schemes:

£750k+ equity requirement
Typically, projects require 30%+ profit on cost
Experienced developers only
100% funding for acquisition and build costs
Complex structures - offshore and non-UK residents
All UK and certain EU jurisdictions considered
Upscale and run multiple projects
All asset classes considered

Spread your equity further, for greater returns and results

With our focus on both the debt and equity markets, we offer our clients the depth of expertise needed to deliver creative, customised structuring solutions, drawing from both traditional and non-traditional capital sources. With access to a range of investors, family offices and funds, we can source and advise clients across various sectors and scheme sizes.

Having the knowledge of the expectations of our investors is key; what are their expectations for return on investment, profit share, any linked coupons, shares in the company or structure. All have different goals. Plus, we need to make sure these structures tie in with the senior debt fund who may be supplying the debt.

Creating an investment pack is key to creating a strong first impression. An easy analogy is standing up and presenting in Dragons Den – you have a small window to gain interest. Like any business, they are investing in the full proposition. Who is the developer, what have they done prior, is the scheme in a good location and in a strong market? When are they likely to start to see returns and how long will their money be tied up. Some of our investors will spread their capital across many platforms, so why is yours the right option?

Luckily, with the investment being underpinned by a property asset, it is highly attractive to investors, meaning it opens door that would usefully be closed to you as a developer, meaning greater returns. It may surprise you how many medium/large developers have JV or investors backing them.

Understand how the capital stack works here.

Why use us?

Trust builds relationships, relationships create results

1

Developers looking for equity/investment to undertake larger/multiple sites with equity from: family offices, institutions, insurance funds, pension funds, private funds, HNW and other providers of equity

2

We prepare our own presentations, providing you with a detailed, compelling overview of the prospect, its market opportunity, strategy, and capital structure, tailored specifically to the target

3

Forward funding options are available - the site is acquired from the developer and built out under a development management contract, meaning initial cash out against land value, profit share and no sales risk

4

Landowners who wish to utilise their land to create a greater profit return by creating a joint venture with an experienced developer/contractor

£6m Acquisition to Expand a Hotel Chain

Read how we helped our client secure £6m of finance to purchase several buildings in need of refurbishment and expand an existing hotel chain portfolio.