PROJECT FINANCE

Finance your Project

Avantis Wealth specialises in raising private equity funding from our client base of individual investors for asset-backed projects that may be difficult to fund in conventional ways.

Sectors that we have successfully raised funds for:

  • Residential and commercial property development, including land acquisition, flips, refurbishments and more.
  • Private and commercial lending
  • Trading, including debt and forex
  • Infrastructure projects in developing countries
  • Mining
  • Car parks
  • Serviced offices
  • Social enterprises including renewable energy, specialist care homes, waste to power facilities

How much can we raise?

Over our last six projects we have raised £15m. Most projects require between £1m and £5m. If the financing requirement is short term, and/or if the investor terms are particularly generous, then it could be towards the higher end of this scale.

How fast can we raise funds?

Once terms are agreed and due diligence is complete, our current record is raising £4.5m in three working days. If the offer is good, rather than exceptional, the time to raise will be slower than this.

What elements have to be in place?

All investments have to fit our F.R.E.S.H investment strategy. This means:

  1. Fixed income – Our investors have to know what they will receive, not some future capital growth, or a profit share, but a fixed and contractual return.
  2. Rewarding returns – Our projects almost never return less than 12% pa to investors, and recent projects have returned as much as 20% in six months.
  3. Exit strategy – Investors must know when the investment matures and for this to be a contractual necessity. The most “in demand” investments only require funding for 6-18 months. Some investments run as long as 3-4 years but these are increasingly the exception.
  4. Security in place – Ideally, we like first charge UK property as security, but we will consider insurance wraps, corporate or other independent guarantees. On rare occasions, where the return to the investor is exceptional, we may relax our security requirements to a small degree.
  5. Hands-off – our investors do not wish to be involved in management meetings or decision making. They do, however, expect to be kept informed of progress.

Above and beyond these basic requirements, all projects are subject to detailed and invasive due diligence which may cause a project to be rejected.

Structure of the investments

All fund raising activities are done by way of loan notes or bonds. Investors do not invest in shares or own assets. We can make introductions to specialist firms who can assist with creating suitable structures.

What projects will we not consider?

  • Hotels and resorts
  • Projects where there is inadequate security cover, insurance or guarantees to cover the borrowing
  • Long term projects over 5 years
  • Anything that is politically sensitive, environmentally damaging, morally questionable
  • Most projects in emerging markets or where the rule of law is questionable

Cost of funds

Avantis Wealth receives a marketing allowance from each investment provider and possibly other forms of remuneration linked to funds raised or the success of the project. Commercials will be discussed in the initial meeting to ensure that the project can bear the total cost of the finance provided.

Note that raising funds in this manner is an expensive process and typically works best where:

  1. The finance provided is an ‘enabling piece’ of funding that can be blended with other, cheaper, funding sources, or
  2. It provides the ability for a project to make a substantial profit which justifies the cost, or
  3. It kick starts the project with the first piece of funding

Benefits of working with Avantis Wealth

Pick us because we:

  • Understand the dynamic nature of the asset-backed alternative investment marketplace and its enormous growth potential
  • Possess the experienced property and alternative investment professionals, industry insights and expertise to anticipate new challenges and maximise opportunities
  • Assist investment providers in structuring their investment proposition prior to going to market
  • Boast a mature and active client base and agent network that enables new investment opportunities to raise funds in excess of £2m – £5m in a matter of days
  • Invest in and maintains comprehensive and rigorous risk management and due diligence procedures before offering a new opportunity to market
  • Ensure through effective client services and administration smooth and timely processing of investor applications to invest in both new and ongoing opportunities

TESTIMONIAL

“Dear Rod,

I felt the need to drop you a line of congratulations regarding the three successful project investment completions you have achieved this year with The High Street Groups’ construction and development businesses.

You and your people have delivered extraordinary success on the back of initially limited materials and information.

Always way under the timelines we requested and considerably over target.

Patience and commitment to communicate an accurate message regarding clients needs have helped us to convert nearly 100% of all client applications.

I can’t thank you enough for being talented at compliance and organisation and managing client and Advisers with just the right balance applied by an extremely well balanced and supportive Admin and management team.

Well done again. Long may our extremely successful distribution relationship complete fantastic solutions for High Net Worth clients.”

Kindest regards

Tony Hughes
Group Sales Director
The High Street Group

Next steps

Whether you’re starting, building or expanding your company and/or investment project proposition. Avantis Wealth can help you with structuring your investment proposition, aid on risk management and security to secure investors’ interests, assist with investment memorandum production, marketing to receptive high net worth and sophisticated investors and ultimately highly-effective capital raising.

Avantis Wealth is gaining recognition as the go-to-broker of choice for property developers and others, looking to raise finance through loan notes and corporate bonds. In our last six projects, we have raised circa £15m.

If you have a project that you believe will fit our F.R.E.S.H. Investment criteria please call +44 (0)1273 447299, complete the form below or email project@avantiswealth.com.

Project finance get in touch

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