What is Project Finance? Project finance is a specialized financing method used for large-scale infrastructure, energy, and industrial projects. Unlike traditional corporate finance, it relies on the project’s future cash flow as collateral rather than the borrower’s balance sheet. If the project fails, lenders can only recover their funds from the project itself—not from the
What is Private Debt? Private debt refers to loans provided by non-bank lenders, such as private credit funds, institutional investors, or specialized financing firms.3 These lenders offer debt financing directly to businesses or project owners, often for projects that require significant capital or have unique characteristics.1,2 Key Points: Private debt offers flexible, customized loan terms,
What Are Capital Projects? Capital projects are large-scale, long-term investments in infrastructure, energy, transportation, or industrial developments. These projects often require significant financing—typically $100 million or more—and can take years to complete. Examples include: Capital projects are critical for economic growth but come with unique financing challenges due to their scale, complexity, and risk profile.1,
Key Points: Pledged assets are used as collateral to secure loans, reducing lender risk and enabling better financing terms. They can include real estate, equipment, or future revenue streams, offering flexibility for large-scale projects. Defaulting on the loan can result in the loss of pledged assets, so careful risk assessment is essential. For project owners
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