Alternative finance refers to financial channels, processes, and instrument that have emerged outside of the traditional finance system such as regulated banks and capital markets (Source: Wikipedia).
Then, when we speak about to wealth enhancement or about to finance a project, ‘alternative finance’ simply means that the Client does not negotiate with the Front Office of a Bank or with other Finance Institution at a retail level but an Asset manager will structure a tailored wealth enhancement or a funding program according the planned financial goal or according the project Cash Flow, the Business Plan and/or other financing plans, and in the same time the Client is (or he is going to be) the Owner/Titleholder of one or more bankable assets, and these assets can be traded on a Bank-to-Bank basis.
The 3 types of funding structure most commonly applied are:
- Credit Enhancement via Collateral Asset acquisition
- Secure Investment with predictable or even institutionally guaranteed performance
- One-off Capital Investment (Debt/Equity) by one of our Proprietary Fund partners with an appetite for certain types of projects/businesses. For each type, there are several very credible, proven financial institutions at our disposal with each their own applicable entry-level requirements, with which we aim to match clients based on their specific needs, wishes, and financial capabilities.
More details you can find at our ‘Placement Overview’ Page.