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Four Sources of Finance

Projects are generally financed from four sources are complementary in making up the optimal financial stack.

  • Up to a certain maturity, projects are financed with equity and shareholder loans
  • After reaching a certain point, projects can benefit from external equity participation, sourced from private and institutional investors
  • The next phase of the capital stack is quasi-equity participation in the form of bridge or mezzanine loans and preferred equity
  • Before construction phase starts, the majority of projects are financed with senior debt

We do not adhere the strict theory that there is only one modus of investment to bring a development to fruition - rather the Vizzion Group’s approach is to take a risk-managed approach and to tailor investment into the four aforementioned categories. The private equity risk profile inherently reduces with the progressive maturity of each project.