For over thirty years our capital advisory group has helped numerous corporate, governmental and NGO clients with capital structuring and restructuring. We specialize in difficult-to-fund opportunities where conventional financing is simply not an option. Moreover, our international reach affords us access to the most state-of-the-art financing techniques and mechanisms available worldwide.
Bank and Financial Institution Referrals
We often receive referrals from banks and other financial institutions that have clients with non-performing or distressed loans, but are clients that the bank still feels are viable, long-term.
In these cases, we typically conduct a thorough review of the client firm’s balance sheet to determine asset capitalization opportunities that the client may have overlooked or been unaware of. At the client’s request, we may also get directly involved in negotiating a restructuring plan with the client’s lenders/investors.
Equity Capital Structuring
We use our extensive knowledge of equity capital structures to advise clients on the full range of equity investment possibilities including: angel investors, crowdfunding, private placements, convertible debt, venture capital investors, etc.
For most corporations in the U.S., traditional venture capital is not a viable option given that over 80% of venture capital investments go to firms in just three states: California, New York and Massachusetts, which is why non-traditional equity structures are so important.
Debt Capital Structuring
While debt financing is the most common and accessible means of financing, it is not without its limitations. Banks and other conventional lenders are typically only able to meet 60% – 70% of the borrower’s capital requirements.
The borrower is usually required to secure the loan via hard assets, the value of which is typically well beyond the loan amount. In addition, the borrower must usually provide audited financial statements and other proof of repayment ability. Oftentimes, innovative debt structures must be employed to overcome these challenges.
Strategic Investments
One of the most overlooked yet effective means of raising capital is through strategic investments. Strategic investments are made when one company takes an economic interest in another company, in exchange for a financial investment.
Strategic investments are sometimes the most viable form of raising capital in complex and difficult situations. However, the most challenging part of this strategy is identifying the correct strategic partner and properly positioning the investment opportunity.
Trade Financing
Used extensively internationally as a technique to expedite payment between buyers and sellers, trade financing uses bank instruments such as documentary letters of credits, bank guarantees and standby letters of credit.
Unfortunately, in the United States and other countries with highly structured financing vehicles, trade financing is greatly underutilized and widely misunderstood. We employ our in-depth understanding of trade financing to develop innovative trade financing structures.
Creative Financing
In situations where more creative financing structures are required, we explore innovative yet proven techniques such as accounts receivable financing (factoring), inventory/ purchase order financing, forfaiting (as opposed to forfeiting), equipment leasing, etc.