The challenges of raising development capital in today's environment

In the current climate, it is difficult, but not impossible, to raise development capital for projects.  Reasons:

  • The development opportunity must be far enough advanced to at least have letters of intent covering key commercial contracts.  Without solid economics, the investor will have difficulty building a business case for investing
  • The technology involved must be proven.  Otherwise, it is better to apply for a grant or federal loan guarantee
  • Low natural gas prices make it more difficult to demonstrate compelling economics.  Working with you to structure your project so that it is appealing to investors and lenders is one area where CTI can add value

Structuring energy project financings

No matter what the market conditions, well-structured projects fare best.  Experience shows that developers who stick to the basics and prepare carefully before approaching investors and lenders always do better. 

Having guided development teams through competitively-bid financings many times, CTI can quickly and efficiently show your company how to:

  • Optimize your project's configuration to produce the quality of return that will meet investors' thresholds.
  • Prepare your project's economic projections and information memorandum in a form that investors and lenders can readily digest and react to.
  • Identify the most logical investors to approach, given your particular project's strengths.
  • Appreciate the differences among investors, and how to appeal to them.
  • View your project from an investor's perspective so that you can best structure development compensation that is attractive to you and still be viewed as reasonable by the investor.
  • Take advantage of the negotiating leverage CTI provides
  • Prepare in advance so that you come across as experienced professionals who have done their homework.

Tough Assignments, Creative Solutions

Member, Financial Industry Regulatory Authority (FINRA
and Securities Investor Protection Corporation (SIPC)


David R. Siever, Chairman, Capital Technology, Inc.
46 Tory Hill Lane, Rowayton, CT 06853
203-853-0220  Fax: 203-853-0535
drsiever@optonline.net
www.capital-technology.com