Private credit market hits $2 trillion in value JP Morgan have committed $50bn to be a direct lender
Private credit
Opportunity
The Private Credit market involves direct lending to sponsors of development projects as well as operating business owners. The interest in this market has exploded. In fact, recent reports suggest that the market is valued at $2 Trillion. With this in mind, JP Morgan has invested $50 Billion into the Private Credit arena.
Subsequent to the above, I would like to provide you with a brief introduction to a bespoke variation of the Private Credit or Direct Lending market.
This product offers investors the following:
Specific projects and sponsors to invest in
Capital protection against capital loss
A variation of potential returns ranging from 15% to 100% return on investment.
A ‘cradle to grave’ support from the product provider management team.
In summary, this investment product is project specific. This ensures that the investor can visit the project and appreciate where and how the investment has been deployed. The profile of this investment product is directly focused as opposed to an investment into an investment fund where the capital is deployed on a more ‘scatter gun’ basis.
Private credit opportunities for high net worth investors
We have various development projects across the USA, UK, EU, Canada and Australia where there is a gap in the funding stack.
We arrange senior debt to help to buy and build out the project but there is inevitably a capital shortfall.
This shortfall could range from 1m to 30m.
The profile of an investment opportunity could be as follows
• Any investment would be project specific and not invested in a fund
• Investment requirement of 3m
• Security of a mezzanine charge on the project behind the senior lender
• An intercreditor agreement with the senior debt provider
• Priority of investment return in front of the developer
• Personal Guarantee from the developer
• Step in rights on the project for the investor
• An insurance policy covering up to 80% of the capital invested against loss in the
project up to 10m
• A Return on Investment (ROI) of 100%. This means, invest 3m and receive 6m back.
Legal protection policy
• An inter-creditor agreement with the senior debt provider
• A second charge on the project
• Personal guarantee from the developer
• Step-in rights in case of developer default
• 50% project profit shares
• Profit share to have first priority in front of the developer’s profit share
• Cost overrun guarantee by the developer
We can also protect against capital loss by way of an insurance policy.
We can commence from 1m upwards.
We have a legal template to protect investors and access to international lawyers.
Summary
• Funding for development projects: private credit providing mezzanine finance and equity
finance target 100%+ ROI
• With collective capital, we can assist builders in scaling their portfolios and increasing their
building capacity
• The investment would offer the developer the shortfall in the capital stack behind senior debt
• Deploying across USA, UK, EU, Canada and Australia
All structures
For institutional clients, we provide bespoke trust and foundation solutions across leading global financial centres.
Our global solutions for trusts and foundations include Jersey SPV, trust fund and co-investment fund.
Our fees
2% management fee and 1% performance related bonus.
This investment opportunity is for sophisticated investors only.
Kindly contact us for comprehensive information.
GS Corporate Finance (GSCF)
Property, business & structured finance
*Minimum 20m+ preferred
GS Corporate Finance provides corporate finance
consultancy and funding support for property developers, business owners and sponsors of complex commercial transactions.
We help assess funding requirements, structure finance proposals and facilitate engagement between prospective borrowers and potential lenders and investors — helping to identify and assess suitable funding opportunities. Our approach focuses on transaction fundamentals, financial analysis, sponsor capability, appropriate security and a credible repayment or exit strategy.
Each opportunity is assessed on its individual merits, with the objective of presenting a clear, commercially grounded proposition to suitable funding sources.
Through financial analysis, transaction assessment and access to a diverse network of potential funding sources, we aim to help clients navigate the financing process with greater confidence, transparency and a clear understanding of the opportunities available to them.
Supported by a regulated Jersey trust structure for fund management.
Jersey SPV - Trust fund - Co investment fund