Advantages of Using Alternative Capital
- Lock in a fixed cost of capital for up to 30 years
- Underwriting is based on the project's strengths, history and future potential
- Provisions for prepayment can be negotiated
- Higher amounts are available than bank loans
- 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 or
need recapitalization and it can be arranged at a favorable price on fair terms with the client being able to negotiate
whether or not to give up equity in their company.
Alternative capital is commonly used in the following industries where the company is seeking financing that can not
be obtained from conventional bank loans, investors and other traditional sources of capital.
- Restructuring Debt
- Buying Out Partners
- Expanding Borrowing Base
- Financing Divestments
Uses for Alternative Capital
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, family offices,
State and Federal government agencies, private equity, sovereign wealth funds, etc,
The forms and structure of alternative capital financing change on an almost monthly 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/investor 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.
- High Technology
- Oil & Gas
- Waste to Energy
- Renewable Energy
- High Quality Commercial Real Estate