Higher Leverage
Capital structures designed to increase proceeds beyond conventional senior debt parameters.
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STRUCTURED CAPITAL
Structured Capital
Bespoke capital structures for real estate transactions where conventional senior debt alone does not provide the required flexibility, leverage or execution certainty.
Capital structures tailored to the transaction
Real estate transactions do not always fit within conventional senior lending parameters. Acquisition timing, leverage requirements, development risk or an evolving business plan may require a more flexible capital structure.
KSCG structures financing solutions that can combine senior debt with subordinated, mezzanine, preferred equity or other alternative forms of capital.
The objective is to create a capital structure reflecting the underlying asset, sponsor strategy, cash flows and intended exit while maintaining a clear route to execution.
Applications
Where structured capital can be used
Complex Acquisitions
Financing where the asset, timing or business plan requires multiple layers of capital.
Development Capital
Supplemental capital alongside senior development debt where additional leverage is required.
Transitional Situations
Capital for assets moving through acquisition, repositioning, development or stabilisation.
Portfolio Transactions
Bespoke capital structures for multi-asset acquisitions, refinancing or recapitalisations.
Special Situations
Financing for transactions that fall outside standard bank or conventional debt fund criteria.
Capital Structure
Building the right capital stack
Structured capital is not a single financing product. The appropriate solution depends on required leverage, transaction risk and the position each capital provider takes within the structure.
Structuring Considerations
Key financing considerations
Leverage
Required proceeds relative to asset value, cost and the overall capital requirement.
Capital Cost
The blended economic cost of senior, subordinated and equity-like capital.
Cash Flow
Current and projected cash flows available to service interest and other capital obligations.
Intercreditor Position
Ranking, security and contractual relationships between different capital providers.
Sponsor Commitment
The sponsor's equity contribution and alignment within the overall capital structure.
Exit Strategy
The route to repay or refinance each layer of capital at the appropriate point in the business plan.
Our Approach
Structuring the complete capital solution
KSCG begins with the transaction rather than a predetermined financing product. The asset, business plan, sponsor profile, capital requirement and exit strategy determine which structures are appropriate.
Analyse
Review the transaction, capital requirement and current financing constraints.
Structure
Design an appropriate combination of senior and alternative capital.
Source
Identify lenders and investors whose mandate fits the proposed structure.
Execute
Coordinate terms, intercreditor matters, due diligence and transaction closing.
Markets
Structured capital across European markets
Netherlands
Structured financing for complex investment, development and transitional real estate transactions.
Spain
Alternative and structured capital for domestic and international real estate sponsors.
European Markets
Cross-border solutions through institutional, private credit and alternative capital relationships.
Discuss a structured capital requirement
Speak with KSCG about transactions requiring more flexibility or leverage than conventional senior debt can provide.
Discuss a transaction→