Home Team Products Investors Contact

Copyright 2018 REM Capital Management                                                                                    Terms and Conditions        Privacy Policy

Private Equity Funding : Structured Finance (leverage)

Utilising the Collateral Transfer market, we work with collateral providers to achieve a structured finance funding solution for business owners looking to raise leverage capital for acquisition or development.

This is a form of institutional funding and requires the client to have a strong, established relationship with their commercial bank and sufficient liquidity to fund a leveraged outcome. The client’s bank having a strong wealth management capability is an advantage.




Private Equity Funding : Summary Terms



Important Information


About Structured Finance Private Equity Funding



6x leverage ratio

~

1 year tenure - renewable

~

Bank to bank process

~

Business owner retains 100% equity

~

Equity earn-out


Funding Example

REM Capital Management arrange highly specialised and unique funding for business leaders seeking to unlock investment value for selected projects over the long term.


The Collateral Transfer market is the bank to bank transfer of collateral for development finance or trade finance based on the collateral provider’s support via an approved credit facility.


The issuing bank is a prime bank, and the client’s recipient bank should have a strong relationship with their client as the funding outcome results in a secured, draw-able credit facility.


Along with our help, the client’s recipient regulated bank and regulated law firm manage the transaction to completion using an institutional, lawyer-to-lawyer and bank-to-bank process.

Minimum

$9.75m

Collateral

$75m

Typical LTV

90%

Portfolio

$67.5m

Portfolio AMC

~ 1%

Lombard LTV

90%

Client Net

$60.75m

Net leverage:

6.2x

Lombard %:

~ 2%



Break-even data

Capital cost

-$9.75m

Lombard cost

-$1.22m

Portfolio ret’n

$3.65m




Total

-$7.33m

Important Notes

Project return (min):

12.1%

This is not an offer to invest or subscribe in any product. Structured finance funding involves leverage and the client’s project and business is at risk in the event of default. The figures in these tables are for illustrative purposes only and are intended as a guide for clients to establish the approximate performance requirement of their project to ensure repayment of principal and return of collateral at term (break-even). These data assume a net discretionary portfolio return of 6% inclusive of wealth management fees and a Lombard rate at 1.5% over LIBOR. LTV, growth rates, loan rates and LIBOR represent key variables affecting break-even.