Over the years we have developed relationships with hedge funds, private equity funds, institutional investors, banks, private lenders, investment bankers, insurance companies, and alternative lenders. As lending standards change it's important to understand the mindset of the capital markets.
This is accomplished through relationships with various developers, a deep understanding of the varied underwriting processes, an understanding of market conditions, enabling us to position the sponsor in the best available light. We’ve found that the material of a project is only as good as the presentation the financial partner receives it in. We put together an information memorandum for each transaction that includes everything needed to perk interest in a financing source. If the package is well received, we then open up the investor or lender to our website where they can find everything needed on the project. Complete transparency is important in every assignment. The sponsor should always know how their project is being presented, and via our process we ensure that everyone stays on the same page.
The days of lenders and investors competing for business is long gone. Today a developer must have a savvy financial intermediary to make a compeling case to a financing source. Just like a lawyer acting as a legal intermediary to a judge and jury, we believe the analogy is identical with us and client in relation to the capital markets.
Today the business model for a bank has changed completely. Many of the members of the credit committee and the loan officers who are still at the bank find themselves in the “special asset” or “work out” groups. At Tzadik Consulting we’ve garnered relationships with many of these banks, and are constantly reviewing their portfolios on the notes and assets that they are trying to sell. If we find an opportunity that we think is worth pursuing, then we’ll put together a financial model to see if the bank is realistic on the price they are going to achieve. If there is mutual synergy on the transaction, then we will partner with one of our third party investors, to facilitate a prompt due diligence and “all cash” closing.
Tzadik Consulting funds low income multifamily and all C-Class opportunities exclusively via Tzadik Management Group, LLC. Visit www.tzadikmg.com.
Telecommunications, Oil & Gas, healthcare, industrial, manufacturing, consumer services, and other natural resources companies today all are facing interesting challenges. Many of the publicly traded companies are doing one of two things, seeing their stock prices tumble and making substantially less money, or seeing their stock prices stumble and making record profits. How can a stock price fall if the company is making money hand-over-fist? That is easy when investors hit the 'sell all' button on their portfolios. Today large companies with tremendous amounts of cash are looking to buy back their own stock, as well as invest and lend to other companies in their industry during depressed prices such as this.
The notion that no one is investing today is a misnomer, but rather financing partners are being, and are able to be, much more selective. As investment bankers we target financing sources who are typically large, well capitalized companies, and have clean balance sheets. We have to screen our resources so we know who has the capabilities to be the right partners for our clients. Essentially we are underwriting both the client, the transaction, and the potential partner all at once to see if there is a match.
Today more than ever a financial intermediary is needed to make sense of the capital markets. We are inundated with all types of information from every media outlet, every day, all day. Here at Tzadik Consulting clients have found piece of mind that by having consultants who understand both the stock and capital markets, they are more likely to reach their financial goals.
The facilitation of a loan is as important as how the money is appropriated after the loan closes. At Tzadik Consulting we work with the clients over the years as the money flows into the project, by mitigating the interest expense through the use of various fixed income, and alternative investments.
We work with investment companies and access their investment pool, and help to customize a cash management solution. By working with clients beyond the typical loan experience, we build a long lasting relationship instead of a singular transaction. An important element in a successful business is managing the risk that the sponsor undertakes. By evaluating the structure of a clients estate plan, personal financial statements, and company format, we are able to advise the client how best to position themselves when seeking financing.
This is only possible with a thorough understanding of debt & equity markets, complex business risk management solutions, and knowing how each component factors into the lender’s evaluation process.