‘Project Finance’, as still taught by universities (and Wikipedia), perpetuates the misconception that it is the ‘…the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors’. In fact, over many decades, it has evolved far away from those 1950’s origins, along with the mostly defunct financial institutions which designed it. Project finance can now be simply defined as: Investment predicated on the track record and financial stability of whoever is contracted to buy the output from the built project, with those same criteria applying to contractors and other counterparties to the project. This definition overrides the assets or balance sheet of the project principals be they public or private sector.
Now, this vastly evolved structure powered overwhelmingly by private debt/equity, finances projects across renewable energy, hospitality, healthcare, infrastructure and many other sectors worldwide, with deal values $10m to $5bn+. To clarify, project finance is investment against revenues from a yet-to-be-built asset, from which mainstream banks and institutions are currently precluded by their own regulations. Only private capital funds have the flexibility to structure this financing. At the same time delivering the long-term, risk-mitigated returns their U/HNWI and other private capital investors seek. See example below:
The risk-mitigated, long-term returns inherent to the project finance structure are now recognised by leading insurance markets, including Lloyds of London, worldwide. They now back project finance insurance ‘Wraps’, endowing their A+ rating on the transactions making them equivalent to any mainstream fixed-income asset.
The PFX Marketplace
Over the past three decades the market has grown into an overcrowded and opaque $multi-trillion market with tens of 1,000’s of private capital funds and thousands of capital-raising projects at any one time (see Media Backgrounder for full stats). More projects were failing to identify an investor than succeed. PFX now fills the vital ‘information gap’ between projects and investors. It is the first step towards consolidating the market, which has the potential to unleash $trillions of private capital into thousands of viable and worthwhile projects across all sectors, worldwide.
We are based in the UK with our Regional Managers, all seasoned project finance intermediaries, located in north America, Europe, Middle East and Asia Pacific. PFX is focused exclusively on the unique project finance structure as opposed to M&A, VC or any other structure.
PFX is a closed, private capital market. No investor or project identifying information is ever released into the public domain.
Raising Project Finance
Project Principals: If you are raising finance please click the Submit Project tab above. You will be able to find a PFX Regional Manager (RM) for your region. Please be sure to download and complete the Intake Form before making contact with your nearest Intake Centre. This form will ensure that you are at a ‘submission ready’ stage and, if not, guide you into getting there.
Introducers/Intermediaries: Please connect with an RM near you through the Submit Project tab above. They will provide you with an NCNDA and fee-share agreement. You can then present all your opportunities through the same RM no matter where they are in the world.
David’s 40+ year career has spanned telecoms, publishing/financial PR/marcoms, early-stage and growth financing leading to project financing since 2005. He has written comment, opinion and features in countless business and finance media worldwide including the FT, Indian Economic Times and Australian Financial Review. He specified the unique fintech that powers PFX and leads all strategy and marketing communications. He has been semi-retired since 2016, when he started work on PFX in response to the challenges for capital-raisers and funders caused through the fragmentated nature of the market.
Derek’s experience in coding and development across finance, retail and logistics software automation brings a fresh perspective to FinTech. He played a key role in evolving a client validation tool that is now in use by hundreds of thousands of businesses worldwide and believes in deploying his coding skills into a positive and enjoyable user experience. He has built on David’s original site specifications and, with his dedicated team, has developed PFX to specifically meet the needs of the global project finance market, without diluting the functionality into other financing structures such as M&A, VC etc.
Richard brings decades of business, finance and strategic consultancy experience with him. His first task was to develop the PFX Concierge service where investors with $5bn+ investible capital receive a more ‘personal’ service on larger value deals specific to their individual requirements. He quickly established himself as someone who brings the necessary clarity of thought and vision for the future to PFX and is now also our CEO designate. He will take over the leadership role jointly with Derek when David retires at some point in 2023, but who will remain as titular Chairman.
PFX Regional Managers
PFX is the shared platform of an alliance of seasoned project finance intermediaries acting as Regional Managers (RM’s) through our eight, global Intake Centres. They ensure that all listings are backed by the supporting documentation, contracts, permits, permissions and other essential information investors demand and meet the demands of any Intake/Origination Chief. They ensure our privacy standards are met across PFX. Once a project is listed it is notified to investors according to their pre-set preferences.
They can be contacted through the Submit Project zone, but please ensure you download and complete the PFX Intake Form first.