Clubfinance provide consultancy support to large scale Infrastructure projects ranging from road and rail to water, ports and airports. Complex projects take a variety of different structures and we use financial models to make sense of each project we work on. We pride ourselves on producing simple, transparent models that are easy to understand. We then deliver on our client’s goals using a wealth of financial and commercial expertise.
Projects vary considerably in how risks are allocated, both between highway authorities and concessionaires and between them and their supply chain.
Whether based on availability only, or with exposure to partial or full traffic volume and pricing risk, our experience covers new continental highways, national roads and bridges, streetlighting and local highway maintenance projects, with a strong emphasis on refinancing road assets.
We also work with projects encountering revenue shortfalls and/or technical issues and our approach of working closely with technical advisors, lenders and sponsors brings confidence to project cashflows.
Sustained passenger growth, regulatory visibility and a highly fragmented market are all attractive features for investors seeking some economic exposure through investing in rail.
With rolling stock able to access both asset finance and project finance, the sector benefits from a sophisticated fund-raising market which can tailor offers to the particular features of each project, and can refinance existing debt to exploit favourable market conditions.
Since privatisation in 1989, overseas infrastructure investors have established substantial ownership of water assets in England.
More recently, further external finance has however been attracted to finance major new infrastructure, such as Thames Tideway.
In addition, we are now seeing smaller schemes that extract energy from wastewater gain traction using standalone project finance techniques.
With UK renewable targets reliant on greater uptake of Renewable Heat Incentive, we may yet see the water sector asked to deliver more of these projects.
As successful fund managers add assets into their portfolio, they want more time spent adding value, rather than delivering compliance.
Our tools are consistently designed to help you make rapid sense of an asset, whatever the sector. We make updating easy, comparison simple, and lenders like receiving our models.
Our knowledge from supporting investors on over 600 assets means we can help make sense of any portfolio, whether or not it uses our templates. Our suite of tools specifically support refinancing, valuation & exit to maximise return in a cost effective manner.
Clubfinance have worked on a number of major roads projects internationally and after recently producing operational models for three UK projects, have been engaged to provide ongoing support in understanding the implications of major defects in the pavement.
The projects were each in need of significant unplanned remedial repairs and with our support, the project companies have been able to understand the implications of the additional costs on funding covenants and shareholder returns. In one instance, having provided a model that rationalised a particularly complex suite of funding documents, Clubfinance then supported the board through negotiations with the consortium of banks, allowing a settlement agreement to be reached with the subcontractors, and ultimately for an equity shareholder to exit the project.
"We are happy to have been able to support these complex projects, and take great satisfaction in being able to provide support during a difficult time, to the benefit of all stakeholders." Paul Austin – Director, Clubfinance
Clubfinance worked with Coast to Coast Ltd – the private sector provider of Water and Sewerage services for 'Package C' to the Ministry of Defence (MoD), which covers the MoD facilities for the North and East of England. Coast to Coast Ltd was the Private Finance Initiative (PFI) special purpose vehicle owned and managed by Severn Trent International and Costain, which has since been rebranded to Severn Trent Services Ltd.
Clubfinance created a new financial model for the company to: allow them to re-examine and assess their existing financing arrangements; provide cover ratio and financial information to the senior debt provider; ensure the shareholders have the most current valuation and yield projections; and to provide the basis for a profit share mechanism between Coast to Coast and the MoD. Our modelling support helped to build confidence in the project's cashflows, which helped the client satisfy all of the project's key stakeholders.
"It was a pleasure to be involved in such a complex yet fulfilling project. This project required all our regulatory knowledge of the water sector and PFI/PPP in order to ensure that the model was simple to understand and user-friendly." – David Scrivens, Director, Clubfinance Project Finance Ltd
Community Health Partnerships (CHP) is the public sector organisation which invests alongside private sector companies in Local Improvement Finance Trust (LIFT) schemes, which have to date generated over £2.5 billion in investment.
With holdings in 49 LIFT assets across England, CHP required a tool to aggregate and analyse their returns on each investment, and to review the operating performance of the portfolio. Clubfinance produced a portfolio model, which consolidates the results from the operational models that are used to monitor each of the individual assets.
The model utilises an automated solution to help enhance the aggregation process, allowing CHP to quickly review the portfolio position upon receiving updates from the investment asset managers, without manually inputting data.
As well as calculating the total returns to CHP, the model also extracts operational information from each project, such as operating cash flows, debt liabilities, and cash balances.
By working closely with CHP throughout the process, we were able to produce a model that is tailored to their bespoke requirements and that is able to incorporate future investments, as well as their existing portfolio.