Advantages of Using Alternative Capital in Project Financing
- Lock in a low, fixed cost of capital for up to 10 years
- Underwriting is based on the project's strengths, history and future potential
- No prepayment penalties
- Higher amounts are available
- Attractive interest rates
- Projects that are in industries experiencing difficulties can still be candidates for alternative financing.
Nola Capital Corporation
Financing with alternative capital takes different forms depending upon the project's industry, the maturity of the
project and the client's preferences. This type of financing is for high quality projects that are short of capital and it
can be arranged at a favorable price, with fair terms, without the client being required to give up an exorbitant
amount of equity in their company.
- Restructuring Debt
- Buying Out Partners
- Expanding Borrowing Base
- Financing Divestments
Uses for Alternative Capital in Project Financing
In some cases, a large amount of assets or other unique features of a project may reduce the equity requirements.
What is Alternative Capital?
Alternative capital is obtained through structures arranged with non-traditional sources of commercial financing.
Sources of alternative capital include private wealth, pension funds, boutique investment companies, State and
Federal government agencies, private equity, sovereign wealth funds, etc,
The forms and structure of alternative capital financing change on an almost weekly basis. Many sources of
alternative capital are located in places that are difficult to find without working with a firm that already has
experience with them. There is not a lack of capital to fund projects. But there is a lack of good projects that (a)
deserve funding and (b) somehow find themselves on the desk of the right funder who is currently doing the
particular kind of deal that a client has.
Even in these challenging times projects are being financed on good terms with alternative capital.
AC4 Financing Program
AC4 financing is the most comprehensive method in the industry to raise alternative capital for debt restructuring,
additional working capital, acquisitions, expansions, development and turnarounds. Traditional alternative capital
financing is normally done in cooperation with a small group of firms that are specially tailored for this kind of business.
The AC4 financing program expands the universe for financing projects by working with a broader range of capital
sources that are now making alternative capital available.
Projects that fail to qualify for other types of alternative capital funding should consider the AC4 financing program.
Underwriting is fair and the cost of funds is competitive. This program is normally offered only to existing clients,
however, a limited number of new clients may apply for this financing. Please contact us for more information about
the AC4 financing program.
Alternative capital is commonly used for the following types of projects where the owner seeks financing that can not
currently be obtained from conventional bank loans, investors and other traditional sources of capital.
- High Technology
- Oil & Gas
- Waste to Energy, Hydroelectric, Geothermal, etc.
- High Quality Commercial Real Estate