Scherer Capital Advisory

Real Estate

Structured Finance

For years now, steadily tightening regulations (Basel II, Basel III, minimum requirements for risk management, etc.) have been observed within the national banking landscape, such as international capital markets. In the course of this, synchronous structures with changing, sometimes unconventional lenders have opened up as meaningful and convincing supplements. Alternative financing instruments as a supplement or substitution to the German-dominated classical banks debt financing have meanwhile arrived on the market and are completely established ("Mezzanine financing instruments" see inter alia the example of Exporo "Crowdfunding / Crowdinvesting",). The motivation for these alternative lenders is, in particular, the low interest rate situation since the recent financial crisis. An investment (in the context of an overall balanced portfolio management) in subordinated structural parts such as junior loans, mezzanine or equity investments are of course extremely attractive in the context of the focus on the expected interest income for investors. It should be noted, however, that even subordinated loan parts represent leveraged products with a higher risk at the same time.

The basic principle of Structured Finance can be described in German as "sequential loss allocation". In the field of securitization, such as Commercial Mortgage Backed Securities (CMBS), Residential Mortgage Backed Securities (RMBS), Commercial or Residential Mortgage Backed Securities, a loan portfolio is virtually "tranched". Structured object, project and portfolio financing work on the same principle.

A key component of the structured finance model is risk-adjusted pricing. This is offset by higher risk premiums compared to the higher probability of default of the long-term tranches, loans and equity investments.

However, risks can be controlled within certain limits - one of the core services of Scherer Capital Advisory. For the above reasons, it is u. a. That is why in the recent past we have increasingly come to "structured finance solutions", which we see as the core of our range of services.

First-class restructuring and recapitalization advice

Scherer Capital Advisory advises clients methodically, integrally and in full - including those who, in the course of their project or acquisition financing and due to their creditworthiness, such as their equity capital, are generally able to refinance with ease.

In such a case, in addition to our adequate and sophisticated financing knowledge, the special added value for our clients is provided by the option of providing a complete or partially operational settlement of a financing transaction from our side and thus effectively and especially efficiently bundling our own operational resources.

As part of our range of services, we take over the complete support of the credit process and thus relieve our mandates proactively and quantifiable. In doing so, we are at your disposal during the credit process for questions and / or participation in important negotiations.

Qualified capital market access

From a certain size of the real estate company, a sustainable trend towards corporate finance solutions has become apparent in recent years. In the course of the internationalization of capital, as well as in particular limiting regulations with regard to traditional debt financing, national real estate companies are financed through initial public offerings, capital increases and bonds. Against this backdrop, Scherer Capital Advisory focuses on companies that are on the threshold of the capital market and provide comprehensive advice.

Profitable joint ventures

For complex projects, a volume is often reached that exceeds the available equity of the client. In such cases, the advisor requires structuring knowledge and an excellent network of mezzanine lenders and / or potential joint venture partners.

  • Process management and mediation of investors for real estate
  • Structuring of financing
  • Excellent network
  • Direct access to decision makers

"The need for advice, especially in raising capital or financing real estate, for effective and efficient financing structures is growing rapidly as a result of the inflated and certainly further increasing statutory regulation".