After its opening in April, private debt and equity funds so far registered with the Project Finance Exchange (PFX)have an aggregate AUM of over $30bn to invest in new projects and are now engaging with capital-raising projects listed on the Exchange. Two decades of evolution have grown the global project finance market to almost 27,000 (source: Eurekahedge) private lenders including hedge, alternative investment, and other private capital funds, as well as investment banks and family offices. All have been trying to identify compatible capital-raising projects from the thousands available at one time. It became so crowded and opaque it was almost impossible for lenders and projects to identify each other. (PFX) has overcome this fragmentation to provide a seamless interface through which projects and private capital lenders can now connect and engage.
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, providing quality control over all aspects of preparing deals for listing on PFX, from Elevator Pitch thru Executive Summary to Full Deck. This unique structure has removed every fund manager’s predicament, time-wasting ‘joker-brokers’ and ‘dreamers’, from the deal origination function. Capital raisers can be assured that listing their project on PFX means that they will be taken seriously by fund managers with their identity undisclosed to the public domain.
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 there are other considerations that we had to take into account when building our fintech. No fund manager wants their identity exposed, uncontrolled, to the whole market, so time-wasting dreamers and joker-brokers can inundate them with worthless appeals for funding. PFX registered funds are assured that their identity is disclosed only to the PFX Regional Manager handling a pre-qualified transaction that they want to engage with. Our intake and origination standards match those of any fund.”
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, nine 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 involving construction 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: “This is a private capital market. Both our registered funds and capital raising projects are assured that their identities never reach the public domain. We organize and release the flow of information to those who have asked for it so that the flow of capital can follow naturally, and privately.”
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 in The Raising Project Finance Handbook, available on Amazon. The PFX site presents a popular online financial modeling course for those fund managers and project principals who may not yet be working with the structure.
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