Our unique Principal Investments (PI) funding solution enables us to structure, advise and fund bespoke transactions in the mezzanine or shareholder layers of the capital structure.
We deploy this solution in all major asset classes, typically by providing quasi-debt or preferred equity funding at either company or shareholder levels. We are not limited by asset classes and over the past decade have implemented it in a range of assets, including the corporate, real estate, renewable energy, BEE, mining and telecoms sectors. One of the main features of our PI solution is the flexibility that it provides to companies and investors. It is also attractive for BEE transactions where parties require flexibility (given the limited amount of cash flows available).
Our partnership approach enables:
- Funding that is covenant-light, typically limited-recourse and roll-up in nature (five to seven years). This gives management and shareholders the breathing room to focus on core business activities and aligns the repayment of the facility with corporate action or an exit
- A long-term view on the performance of the business or asset
We would consider the PI solution where there is a need to fund:
- Liquidity for distributions to shareholders
- Equity bridges with a view to an IPO or other liquidity event
- Monetising of stakes without having to sell
- Following of rights issues or capital calls
- Growth initiatives where senior debt capacity has been depleted
- Project finance
