Monterey Bay, California
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Category: equity carry

Inspire | Innovate | Invest

Using CAP Equity Investments for Senior Loans

CAP funding can be used to arrange 100%, full leverage, financing, with no additional “skin in the game” — just the Family Office funding in the capital stack — with sufficient completion assurance Security. As an equity investor, we can also help lower the hurdle of adequate Security for the target funding (see chart showing…
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Why we don’t charge interest for CAP funding

For a limited time, until interest rates come back down, we don’t need to charge interest at all for CAP funding. We don’t want to make loans at our customary SONIA + 2.5% variable APR rate because it isn’t as good for clients. The client benefits from this equity-only participation by our funding partners: This…
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Cash Surety Deposit for In3CAP funding

Instead of using a bank-issued Completion Assurance Guarantee for CAP funding is simply a cash “surety” deposit from the owner or a sponsor/lender, held as Security, which enables at least 3 times the deposit (3x-4x) a result of CAP’s flexible qualification standards and advantageous terms. The 25-35% cash serves as a form of surety —…
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In3CAP and the Cost of Capital

In3’s various 100% financing options are all full-leverage, non-recourse capital, mostly for mid-market Project Finance, but with two that can accommodate venture capital as business lines of credit. Definitions: “100% leveraged” (aka “full leverage” or “fully leveraged”) funding simply means that the entire capital request can be satisfied from a single source. This contrasts with…
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