Private capital funds seek out projects across renewable energy, real estate, infrastructure, and other sectors

So far, private debt and equity funds registered with us have an aggregate AUM of over $30bn and are now engaging with capital-raising projects listed on the Exchange. More than two decades of evolution has grown the global project finance market to 26,824 (source: Eurekahedge) private lenders including hedge, alternative investment, and other private capital funds, and thousands of capital-raising projects at any one time. It became so crowded and opaque it was almost impossible for lenders and projects to identify each other. Our Company, which opened in March, has overcome this fragmentation to provide a seamless interface through which projects and private lenders can now connect and engage.

When the need for a central ‘information exchange’ for the project finance market became clear, the PFX team researched how existing ‘investment platforms’ operate and were surprised to find that they do not separate the different financing structures including M&A, VC, Mezzanine, Growth as well as project finance from each other. This ‘one size fits all’ approach adversely affects their overall effectiveness. Also, fees are charged to list capital-raising opportunities and for financiers to register. PFX decided from the outset to focus exclusively on project finance, operate within long-standing market conventions, and build its business model on commissions paid by its registered funds on completed transactions. While PFX developed its fintech exclusively around the project finance structure it also built an infrastructure of seasoned project finance intermediaries, acting as PFX Regional Managers, to provide the critical quality control over all aspects of preparing deals for listing on PFX, from Elevator Pitch thru Executive Summary to Full Deck. No one can post their own deal to PFX.

PFX Chairman David Rose said: “After two decades of evolution, project finance is no longer the exclusive domain of mega-dollar infrastructure and construction deals. It now spans deal values from $5m to $5bn+ across all market sectors worldwide. But the defining element of all those mega-dollar deals prevails, in that lending is predicated on the track record and financial stability of whoever is contracted to buy the output from the built project, not on forecasts in a business plan. While mainstream banks are precluded from lending on these terms by their own regulations, it delivers unique risk-mitigation and long-term returns for private debt investors.”

Project finance is non-recourse and imposes no financial or other liabilities on the project owners or sponsors, private or government. It is free to list projects on PFX and fund managers originate new deals by registering, free, and receiving elevator pitches matching their pre-set preferences across 40 market sectors, 10 global regions, and deal values $5m to $5bn+.

Early registrations show a clear preference for renewable energy, particularly waste-to-energy, closely followed by all real estate sectors including hospitals, hotels, and infrastructure, including transport and social housing, with no particular preference for any global region. Long-established market conventions including confidentiality and non-disclosures are all built into PFX fintech and infrastructure.

In closing Rose said: “The last thing anyone wants is yet another one-size-fits-all ‘investment platform’. We decided from the get-go that PFX should do no more than structure and distribute the deal information to those who have asked for it. Essentially no more than an information exchange that leaves investors and projects to sort out their own terms without PFX intervention. The same principle on which any stock, commodity or other exchange operates, which is to release the flow of information so that flow of capital can follow naturally.”

Because of its unique structure, applying for project finance is very different from producing a traditional business plan or investment prospectus. Guidance on applying for project finance is provided for all interested project sponsors.

For further information or to submit your projects click on the link here.

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