Structured Finance

The Capmezz team are experts at structuring the capital stack needed to deliver a Real Estate Project. We have an extensive database of senior debt and bridging lenders across Europe, but more importantly we have strong relationships based on previous deals. To be honest finding a senior debt lender isn't that hard, if its a good project, the developer has previous experience, the return on costs is adequate and there is a clear exit route. The real skill is ensuring the terms and lender are right for the project; and then supporting the lender diligence and project managing the legal process all the way through to completion.

Mezzanine Finance

Mezzanine lending takes many forms and there are multiple well-known Mezz Lenders in the UK; however there are many more who never advertise - such as Family Offices and Funds and we have connections with a significant number of them. Each have different criteria which often change frequently but we are slowly mapping out individual appetite and when a deal comes in, we can rule the vast majority out immediately and then focus on discreetly promoting the project to those on our shortlist - alongside the traditional Mezz Lenders of course.

Equity

We asked an existing Equity player (and friend), If we could use his name as a testimonial, but he was horrified, saying he would be bombarded with enquires. That’s the reality of the Equity market It’s entirely opaque.

We have a huge number of connections but tend to focus on a relationship with around 20 of them, the really active ones with large pockets, who will support multiple projects at one time.

Our objective is always to secure a long-term relationship with Equity Investors who will fund a number of transactions for the same client rather than just one off deals. The first deal is always the hardest, but it then gets easier as the trust develops.

Joint Ventures

We offer two distinct services:-
Full JV service

We will produce a robust Investor Pitch Book (IM), source a JV partner, help structure the JV and provide input to solicitors for the contractual agreements. We will also secure senior debt and Mezz If required.

Many JV's are between land-owners and developers and the sticking point is that the land owner wants some cash-out day one, whereas the senior debt lender want him to leave his cash in the deal. There’s also the issue of personal guarantees - usually the developer partner is reluctantly willing to provide a PG but the landowner refuses. These are just 2 sticking points of many, which we can help with.

A more interesting recent trend is the number of High Net worth individuals who have plenty of cash but no experience and want to enter into a development JV by way of SPV with an experienced contractor or lead developer. We can help with this too - as long as the deal is non regulated

Technical services/ Investment ready

For very early stage JV projects we can act as part of the team providing a consultancy service. We will be on call to advise on all of the financial aspects, with the aim of making the development ‘investment ready. This can be on a retainer basis or fees based for specific work such as drafting the cash flow from scratch, producing the Pitch Book. or WHATIF modelling to maximise profitability. Once this has been achieved we can then go and find the right JV partner.

Family Office and Private Equity deal sourcing or Deal screening service

Sourcing service

We understand how Family Offices and Funds operate and the need for discretion. Our sourcing service allows you to stay behind the scenes whilst we explore the market looking for opportunities which meet your brief.

For example we have just been asked to assemble a number of Student development deals for a large Fund and are currently searching for the Right shovel ready PRS scheme for a London Family Office.

Screening service

We can go one step further and you can direct all your unsolicited enquires to us for screening and initial diligence. We will report back to you on those deals which we think are viable and meet you criteria. You will always get first refusal and if you don’t have appetite, we will pay you a fee if another family office, PE firm or lender decides to support - with your prior consent of course.
Both services are free of charge for Real Estate finance and we only take retainers on Oil, Gas and Terminal deals due to their size and complexity.

Due Diligence & Debt Restructure

Site visits

Useful for offshore lenders who just want us to keep an independent eye on UK mainland project progress . ie Jersey lender or Singaporean Investor with developments in Edinburgh and Manchester. We will complete a full report based on the site visit and interview with the client and build team. We will even produce an updated development appraisal and cashflow to reflect actual costs to date and current marketing comparables.

Potential Covenant Breaches

Acting for the funder when there's a potential cost overrun, time overrun or a material breach. A softly-softly approach on the ground to get things back on track.

Breaches - Intervention, strategy review and exit plan

If things have gone really pear-shaped, we will explore all potential exit routes and provide a fully costed proposal on loss mitigation strategy.

Debt restructure

We will represent either a client OR a lender/funder in formal debt restructure negotiations to find a win-win outcome. From experience the most important issue is bringing the two parties to the table and agreeing the actual facts before deciding on strategy to minimise losses for all.

One of our team has 7 years debt restructure experience, of which 4 of them were working for a U.K. Treasury owned lender and had personal responsibility (via 9 staff) for a portfolio of £3bn. He has a strong security and insolvency background and has implemented the vast majority of legal protection and debt restructure techniques ranging from testing covenants, LPA appointment, and even civil restraint order. This invaluable experience can be made available to either lender or client in a debt restructure negotiation.

Confidential site appraisal for Family Office and Funds

If you need to divest one of your development investments - ie one of your land bank sites or land acquired via JV. We can have the site and proposed scheme appraised by a highly discrete valuer and QS/MS firm who work closely with us. They will give you an honest off the record opinion of value, viability and indeed marketability via a desk top.
We have existing relationships with a number of developers who are looking for their next project.

Cash flow, Appraisal and Pitch Book (IM)

CapMezz can help clients produce a robust cash flow and development appraisal (with sensitivity analysis). We will challenge your costs and comparables - before the lender or investor does.

Format and content are important - we’ve seen 200 page pitch books with every technical drawing under the sun and wonderful estate agent sales particulars but flawed development appraisals or cash flows that don't add up. It’s a missed opportunity sending a document like this to a Mezz lender Equity Investor or JV partner

We can produce the Investment Memorandum (Pitch Book) for you. This includes a detailed due diligence excel sheet which will answer 90% of any lender or JV partners questions. We will help you to answer the remainder

Events Activity - Capmezz, EnergyScout & Hydrogen Private Equity

Real Estate Development Expo 2023 - A Capmezz Event

PROSPEX

EnergyScout will be exhibiting at London PROSPEX which clearly has an oil and gas focus but the attendees are Private Equity, Family Office and HNW who all have Real Estate interests.

Houston Nape

EnergyScout will be exhibiting again in 2024. This time we will extend the visit to 7 days and will set up meetings for CapMezz with US Family Offices and Funds. This will cover oil and gas, renewables and Real Estate

Singapore

Following the previous successful 4 day EnergyScout trip

to Singapore , ES have set up a series of meetings for CapMezz with Singapore funds.

Corporate Finance and International Projects.

One of our active directors has an interest in 3 finance advisory companies across the core sectors of Real Estate, Energy, Ports & terminals
We also see a lot of opportunities which fall outside of these core sectors. Examples are requests for equity for seed funding, series A, share acquisitions and cash flow funding. In some cases, core sector funders have capacity and appetite for these deals, and if they don’t we will conduct desktop research and reach our to connections to find out who will have appetite. Each time we do this our funding database and relationships grows. So feel free to send us your non-standard and 'interesting' deals.

Institutional Forward Sale/Funding

This service applies to Student, PRS and Hotel schemes.

Once a scheme reaches a certain size it needs forward funding/sale to de-risk it. The same principle applies to commercial schemes which need forward leases.

We can help larger, experienced developers find the right institutional or Public sector partner.

One of the team hold 20 years experience in Forward Funding and worked in the affordable sector for Local Government, before moving on to a senior level role with an Institutional funder where he helped set the land division up. His contact book reads like a who's who of the forward funding/sale industry.

Capmezz Deal App

Version 2 is under development

About Us -Summary

We provide a project origination service for Family Office and Funds; and source Bridging, Development, Mezzanine and Equity/JV for developers and house builders.

Some of our deals come from brokers who have already sourced the senior debt and need help finding the rest of the capital stack ( Mezz and Equity). That said, we also have a small number of clients who are prolific developers. One is a main contractor who builds for the national house-builders but also develops 5 sites a year in their own right. They retain us to source debt, equity and cashflow finance.

We welcome direct enquiries from developers. Some need help with production of the Investment proposal, development appraisal and cash flow modelling; other more experienced clients, need guidance on deal structure, sourcing a JV partner, negotiating a revolving development facility, or seeking Forward Funding.

Sister firms - common directors, shareholders or partners.

Tank Bank - Singapore.
EnergyScout - UK
Hydrogen Private Equity

There’s synergy across our sister firms as EnergyScout and Tank Bank invest heavily in international event attendance and we have exhibited in Houston and Singapore and attended events across South East Asia and Europe. This means we talk to a huge number of funds and family Offices - many who invest across Energy, Port terminal storage and a number are highly active in Real Estate.

How do Capmezz Operate?
This is not a crowd funding platform nor do we want it to be. We source investment and lending opportunities for for Lenders, Funds, Family Office and Private Equity Firms. If we have been retained by a lender or Investor who are looking for a project and want Capmezz to conduct the due diligence, then we will disclose that from day one - and we act for them. If however we are working for a developer to find a JV partner or Mezz lender - we work for the developer and will seek to structure a deal in their best interest.

We focus on business to business transactions and we do not engage in regulated transactions.

Let’s Talk

Contact Peter Hudson, Director CapMezz on +44 7383 973805

Winchester - CapMezz, EnergyScout, Hydrogen Private Equity. Winchester Private Finance

Singapore - Tank Bank

Phudson@capmezz.com - Real Estate & JV Equity

AJury@energyscout.net - Energy Project Debt & Equity

Phudson@energyscout.net