Underwriting & Distribution Methodology
This document outlines the standardized processes for underwriting and distributing transactions across our primary service lines. It is designed to provide clarity for both our clients and internal teams.
Trade Finance
Typical Timeline: 3-6 Weeks
1
Intake & Initial Analysis
Our Process
- Review transaction fundamentals.
- Conduct preliminary counterparty checks.
- Assess initial risk profile.
Client Deliverables
- Completed RFQ form.
- Pro-forma invoices & purchase orders.
- Basic info on buyer/seller.
Success Criteria
- Transaction is legal and viable.
- No immediate compliance red flags.
- Client pays initial RFQ fee.
2
Structuring & Term Sheet
Our Process
- Design a bankable financing structure.
- Identify appropriate financial instruments (LC, SBLC, etc.).
- Issue a non-binding Term Sheet.
Client Deliverables
- Detailed KYC/AML documentation.
- Corporate resolutions authorizing transaction.
- Acceptance of Term Sheet.
Success Criteria
- Client executes Term Sheet.
- Client pays engagement retainer.
- Structure is deemed feasible by our team.
3
Distribution & Funding
Our Process
- Prepare a formal credit package.
- Distribute to our network of lenders/funders.
- Facilitate final documentation.
Client Deliverables
- Final, executed legal documents.
- Proof of any required collateral/margin.
- Swift responses to funder queries.
Success Criteria
- A funder provides a binding offer.
- All closing conditions are met.
- Funds are successfully disbursed.
Commercial Real Estate
Typical Timeline: 4-8 Weeks
1
Deal Intake & Sizing
Our Process
- Analyze property type and market.
- Perform initial valuation and sizing (LTV/LTC).
- Assess sponsor's experience and financials.
Client Deliverables
- Property address and description.
- Rent roll and operating statements (if applicable).
- Loan request and proposed use of funds.
Success Criteria
- Deal fits within general lender appetites.
- Sponsor meets basic credibility checks.
- Client pays initial RFQ fee.
2
Underwriting & Lender Matching
Our Process
- Prepare a comprehensive lender memorandum.
- Analyze cash flow projections (DSCR).
- Match deal with specific lender programs.
Client Deliverables
- Full sponsor financial statements.
- Purchase agreement or construction budget.
- Executed Term Sheet and retainer payment.
Success Criteria
- Deal passes our internal underwriting standards.
- A curated list of target lenders is approved.
- Client provides all requested documentation.
3
Closing Coordination
Our Process
- Facilitate lender due diligence (appraisal, environmental).
- Negotiate loan commitment terms.
- Coordinate with all parties to close.
Client Deliverables
- Timely payment of third-party reports.
- Provision of legal entity documentation.
- Final signatures on loan documents.
Success Criteria
- Lender issues a final loan commitment.
- All closing conditions are satisfied.
- Loan is successfully funded.
Project Finance
Typical Timeline: 3-9+ Months
1
Feasibility & Risk Assessment
Our Process
- Review feasibility studies and offtake agreements (e.g., PPAs).
- Identify and analyze key project risks.
- Provide initial structuring feedback.
Client Deliverables
- Detailed project description & financial model.
- Feasibility studies and permits.
- Information on all key project counterparties.
Success Criteria
- Project is deemed technically and economically viable.
- Risks are identifiable and appear mitigatable.
- Client pays initial RFQ fee.
2
Structuring & Info Memorandum
Our Process
- Design the optimal non-recourse capital stack.
- Develop risk mitigation strategies (e.g., insurance).
- Prepare a formal Information Memorandum.
Client Deliverables
- Executed EPC contracts.
- Finalized financial projections.
- Executed Term Sheet and retainer payment.
Success Criteria
- Capital structure is finalized and agreed upon.
- Information Memorandum is approved by Client.
- Project is deemed "bankable."
3
Capital Raise & Closing
Our Process
- Market the transaction to a select group of investors/lenders.
- Lead negotiation of term sheets and final agreements.
- Manage the financial closing process.
Client Deliverables
- Active participation in lender/investor meetings.
- Provision of data room for due diligence.
- Execution of all final legal and financial documentation.
Success Criteria
- Binding commitments for the full capital stack are secured.
- All conditions precedent are met.
- Financial close is achieved.
M&A Transactions
Typical Timeline: 2-4 Months
1
Deal Intake & Viability
Our Process
- Analyze target company financials (EBITDA, SDE).
- Assess quality of earnings and deal rationale.
- Provide feedback on proposed valuation and structure.
Client Deliverables
- Letter of Intent (LOI).
- Confidential Information Memorandum (CIM).
- 3 years of target company financial statements.
Success Criteria
- Target shows stable or growing cash flow.
- Valuation is within a justifiable range.
- Client pays initial RFQ fee.
2
Financing Memorandum & Lender Matching
Our Process
- Create a detailed financing memorandum.
- Structure the proposed debt package (SBA, senior debt, etc.).
- Identify and approach a curated list of lenders.
Client Deliverables
- Acquirer's personal and corporate financials.
- Business plan and post-acquisition strategy.
- Executed Term Sheet and retainer payment.
Success Criteria
- Financing package clearly demonstrates repayment ability.
- A viable path to securing the full debt amount is identified.
- Client is approved for engagement.
3
Loan Closing & Acquisition Funding
Our Process
- Collect and review lender term sheets.
- Facilitate lender's final due diligence.
- Manage the loan closing process alongside the M&A closing.
Client Deliverables
- Final, signed purchase agreement.
- Formation of acquisition entity documents.
- Timely execution of all loan and closing documents.
Success Criteria
- Receipt of a final, unconditional loan commitment.
- Satisfaction of all lender closing conditions.
- Loan funds are disbursed to complete the acquisition.
