Equity & Project Financing

Structured Equity & Project Financing Advisory

Securing capital for expansion, infrastructure development, or major real estate acquisitions requires more than just submitting loan applications. It demands a sophisticated understanding of capital markets, debt-to-equity ratios, and structured financing instruments. At Executive Advisors, our Financing desk provides independent, strategic advice to growth-stage companies and project sponsors from our Fortitude Valley office in Brisbane, helping you design and negotiate optimal funding solutions.

We work across the entire capital stack, helping clients raise private equity, mezzanine finance, venture capital, and structured project debt. We guide you through the process of determining capital requirements, preparing investment-grade documentation, structuring security packages, and managing negotiations with institutional capital providers, family offices, and commercial lenders.

"Successful project financing is built on the precise allocation of risk. By placing risk with the party best suited to manage it, you create a bankable project structure that attracts institutional capital."

Strategic Capital Stack Structuring

We analyze your business cash flows and project risk profiles to design a capital structure that minimizes dilution for founders while maintaining a safe debt profile.

Private Equity & Growth Capital Placements

We assist established businesses in raising equity capital to fund organic growth, acquisition strategies, or shareholder exits. We help you prepare for diligence, construct financial models, identify strategic and financial private equity investors, and negotiate transaction documents (including shareholder agreements, valuation terms, and governance rights).

Venture Capital for Growth-Stage Companies

For high-growth technology, biotechnology, and service enterprises, we manage Series A and B capital raising rounds. We align your business models with the expectations of venture capital funds, optimizing valuation terms and structuring employee options and founder vesting schedules.

Mezzanine & Hybrid Financing Solutions

Mezzanine debt fills the funding gap between senior bank debt and equity. It offers higher loan-to-value ratios than senior lenders can provide, with interest rates reflecting the higher risk profile. Mezzanine finance is often structured with equity warrants or conversion rights, offering flexibility for growing companies that want to limit equity dilution.

Special Purpose Vehicles (SPVs) & Project Finance

For major capital-intensive developments, we establish non-recourse or limited-recourse project financing using Special Purpose Vehicles (SPVs). By isolating the project assets and liabilities within a dedicated corporate shell, we protect the sponsor's balance sheet from direct exposure to project default risks.

Financing Class Comparisons

The choice of funding instrument depends on your business maturity, asset availability, cash flow stability, and growth objectives.

Capital Type Typical Cost of Capital Target Leverage (LVR) Primary Advantage Key Covenants / Governance
Senior Bank Debt 6% to 9% p.a. 50% to 70% Lowest cost of capital; no equity dilution. Strict debt service coverage (DSCR) and loan-to-value (LVR) ratios.
Mezzanine Debt 12% to 18% p.a. 70% to 90% Higher leverage; reduces equity cash requirements. Subordination agreements; equity warrants or conversion options.
Private Equity 20%+ target IRR N/A (Equity) No repayment obligations; strategic investor support. Board seats; veto rights over key corporate decisions; exit expectations.
Project Finance (SPV) 7% to 11% p.a. 60% to 80% Non-recourse to sponsor; protects parent balance sheet. Reserve accounts (DSRA); strict project completion guarantees.

Frequently Asked Questions

What is a Debt Service Coverage Ratio (DSCR) and why does it matter? +
The Debt Service Coverage Ratio (DSCR) measures a company's or project's ability to service its debt obligations with operating cash flows. It is calculated by dividing Net Operating Income (or cash flow available for debt service) by total debt service obligations (principal and interest payments). Senior lenders typically require a minimum DSCR of 1.20x to 1.35x to ensure a sufficient safety margin.
What is mezzanine debt subordination? +
Subordination means that the mezzanine lender's claims to the business assets and cash flows are ranked below (subordinate to) the claims of senior bank lenders. In the event of default or liquidation, the senior bank lender must be repaid in full before any capital is paid to the mezzanine lender. This higher risk is why mezzanine debt carries higher interest rates and often includes equity conversion options.
How does a Special Purpose Vehicle (SPV) protect project sponsors? +
An SPV is a separate legal entity created solely to own and operate a specific project. By signing all project contracts, supply agreements, and debt facilities within the SPV, the project sponsor isolates the project risks. If the project fails, the lenders can only claim the assets held by the SPV, protecting the sponsor's other assets and business entities from liability.