Frequently Asked Questions
PLEASE read this section before submitting any Projects or Private Trade requests. Our processes are driven by the Funders and Program Managers that we use. THEY ARE NOT NEGOTIABLE. If you cannot comply with our processes and do not feel comfortable, please do not proceed.
Alternative Private Capital is a major source for project funding in the rapidly growing alternative capital and non-bank project finance market. This market, which has evolved and developed since the global banking crisis of 2008 is now valued at $71 trillion (Source: Bloomberg). As it has grown it has developed its own rules and protocols and the following are some of the questions we are regularly asked about process and structure:
We receive many proposals from potential clients. Unfortunately, there are not enough hours in the day to discuss each one. We ask all new clients to complete our online submission form with just the information we ask for in the first instance (please read the guidelines in front of the form carefully). This will give us all the information we need to know if and how we can assist. If we believe we can deliver funding, we will then come back and ask for your executive summary and move forward from that point. Calls will follow from that point on. We will also advise if we cannot assist.
It is difficult to be exact. The type of funding, the actual funder and the scope of the project are all factors. Once a project is submitted and due diligence is completed, time frames are easier to nail down.
This is difficult to be exact, but they are designed to move quickly. Once the contract is signed and the trade placed, it can be as little as 2 weeks or 30-45 days.
Despite all the frauds that have appeared along with the arrival of the internet (and the hordes of joker brokers and dreamers that came with it!), in the real world it has always been the case that genuine funders incur banking, legal, collateral, processing, due diligence, and other costs. They are not going to do that without a show of commitment from the client who could walk away from the transaction at any time leaving the funder liable for all costs. Would you? We will advise and present your proposition.
Most programs require a deposit or costs of some description to be covered, but only AFTER you have been made and accepted an offer of funding. Demanding that any deposit or cost is taken from the eventual funding simply tells us that you are inexperienced and do not expect to make any real monetary commitment to your project. Naturally, beware of any broker who wants a fee from you just for looking at your proposition or to present it to a funder.
You may have bought your land, spent money on R&D or acquiring other assets in preparation for initiating your project. In the old days of traditional banking and loans, these might have been taken into account and considered a ‘deposit’ or ‘equity contribution’ towards your funding. But, even then, you might well have expected to cover other related costs. In the non-bank finance market, which is now the dominant form of project financing, your previous monetary commitment is a significant encouragement to the funder, but there are costs and charges involved in your financing towards which they still expect to see a contribution from the client. Also, despite what you have already spent so far, a funder could still turn down your application if they don’t believe your management team is up to the job.
Also, as with the previous question, there is nothing to stop you ‘shopping’ your deal and walking away at any time, leaving your funder with nothing but wasted time.
The reason that funders work through gatekeepers, such as Alternative Private Capital, is because they want to focus on doing financing rather than fielding enquiries from the many ‘dreamers’ that have overrun the market. In fact, these are the majority of submissions received by us and others in our field. At your initial enquiry stage it is people like us who act as the filter and, if we believe you are viable, shovel ready and prepared for serious transactions will present your proposition to what we believe will be a suitable funder.
Until you have been through that filter and the funder has had the opportunity to review your case, they prefer to keep their identity withheld. Sometimes they will deal only through their Lawyers and/or Accounting Firm to protect their identity.
In this market, where private investors invest through their asset manager, hedge fund or other ‘wealth manager’, very often through proprietary structures, every deal is covered in confidentiality agreements. These are essentially ‘private’ transactions and any disclosure could see the hedge fund lose their investors or cause other problems. Genuine funders will either meet with you and show you evidence of completed deals or at least, you will draw comfort from knowing who you are dealing with.
You will be dealing with funders who are managing vast sums of money on behalf of private investors and institutions. In some structures, the funds that are used for investment come from a number of different sources and are assembled through companies that, in themselves, cannot show the full amount of funding required. They simply receive the funds from their investors, structure the loan and then act as your loan provider.
Unfortunately, particularly with government entities involved in infrastructure, they still ask for proof of funds before ‘approving’ a funder. This is the reason why many social and economic infrastructure projects are held up in those less ‘enlightened’ jurisdictions, where those in government do not realize that the new non-bank structures can rarely provide the traditional ‘proof of funds’.
Other Funders will ask their Lawyers to show Proof of their Ability to Fund directly to your Lawyers, on a lawyer to lawyer communication. Again, this is to protect their identity.
Bearing in mind the number of submissions we receive it is impossible for us to review and sign client NDA’s. We have a standard NCNDA, based on the widely accepted ICC format, which we will ask you to sign if we move forward with your transaction.
The information on this site is intended solely for the benefit of firms and individuals seeking to be connected with various funding and monetization sources. The material on this site lists possible service features and/or sample institutions for informational purposes only, are not guaranteed and subject to change and does not constitute an offer or solicitation to purchase any investment solutions or a recommendation to buy or sell a securities nor is it to be construed as investment advice. The services featured on this Website may not be available in all jurisdictions or to all persons/entities. By accessing this Website users acknowledge that Alternative Private Capital, is solely a Deals Facilitation Service that works intimately with clients to assist them to implement a range of appropriate Solutions directly with professional service providers. Our role is to connect people, assist in the removal of deal barriers and peer the right service provider with the right client so customers can achieve a likely successful conclusion. We are NOT a Broker, Finance Company and or Financial Advisor. The contemplated transaction(s) of our Clients are strictly private and in no way relates to the United States securities act of 1933 (THE”ACT”) or related regulations and does not involve the sale of registered securities. These transaction(s) are therefore private and exempt from the act. Please be aware that any disclosure, photocopying, distribution or use of the contents of this information is prohibited.