Structured Finance
Structured Finance
Traditional financing approaches often fall short when businesses face unique circumstances, unconventional asset profiles, or complex risk allocation requirements. Structured finance transforms challenging financial scenarios into viable capital solutions through innovative engineering of cash flows, risk distribution, and security structures. This sophisticated discipline requires deep technical expertise, creative problem-solving abilities, and comprehensive understanding of diverse capital markets.
Our structured finance practice addresses situations where standard lending and investment products cannot adequately serve client needs. By deconstructing complex financial challenges and reconstructing them through tailored structures, we create bespoke solutions that unlock value and provide access to previously unavailable capital sources.
Core Structured Finance Capabilities
- Asset-Backed Securities (ABS) Structuring We design and execute securitization transactions that convert illiquid assets into tradeable securities. Our expertise spans receivables financing, equipment financing, intellectual property monetization, and specialty asset classes. Through careful structural design, credit enhancement mechanisms, and investor targeting, we optimize execution outcomes while minimizing funding costs for originators.
- Project Finance and Infrastructure Funding Complex infrastructure projects require sophisticated financing structures that align with long-term cash flow profiles and risk characteristics. We structure project finance facilities for energy projects, real estate developments, public-private partnerships, and industrial facilities. Our approach balances sponsor requirements with lender risk appetites through careful allocation of construction, operational, and market risks.
- Trade and Export Finance Solutions International trade transactions present unique financing challenges involving currency exposure, political risks, and complex documentation requirements. We structure trade finance facilities, export credit arrangements, and cross-border financing solutions that facilitate global commerce while mitigating inherent risks through appropriate security structures and credit enhancements.
- Synthetic and Derivative Structures Advanced financial engineering often requires synthetic exposure creation, risk transfer mechanisms, and derivative overlays. We design credit-linked notes, total return swaps, and other synthetic instruments that provide targeted exposure or risk mitigation without direct asset ownership. These structures serve sophisticated investors seeking specific risk-return profiles.
- Distressed and Special Situations Financing Companies facing financial distress or unique circumstances require specialized financing structures that accommodate irregular cash flows, uncertain outcomes, or complex stakeholder arrangements. We design contingent value instruments, performance-based securities, and restructuring-friendly facilities that provide necessary capital while protecting all stakeholder interests.
Specialized Structure Types
- Contingent Convertible Securities These hybrid instruments provide issuers with flexible capital that converts to equity under predetermined trigger events. We structure contingent convertibles for financial institutions seeking regulatory capital credit and corporations requiring contingent equity financing for specific scenarios or performance milestones.
- Revenue-Based Financing Structures Alternative to traditional debt or equity financing, revenue-based structures provide capital in exchange for percentage of future revenues. We design these arrangements for high-growth companies, seasonal businesses, and enterprises with predictable revenue streams but unconventional cash flow patterns.
- Insurance-Linked Securities We structure catastrophe bonds, insurance derivatives, and other risk transfer instruments that provide capital market access to insurance and reinsurance risks项. These sophisticated structures enable risk diversification beyond traditional insurance markets while offering institutional investors uncorrelated return opportunities.
- Commodity and Energy Finance Resource-based businesses require financing structures that accommodate volatile commodity prices, regulatory changes, and operational complexities. We design reserve-based lending facilities, streaming arrangements, and commodity-linked securities that provide appropriate financing while managing inherent volatility.
Risk Management and Credit Enhancement
- Structural Credit Enhancement We incorporate various credit enhancement mechanisms including overcollateralization, reserve accounts, insurance wraps, and subordination structures. These features improve credit ratings, reduce funding costs, and expand investor base accessibility for structured products.
- Multi-Tranche Structures Complex transactions often require multiple security classes with different risk-return profiles to attract diverse investor bases. We design senior-subordinate structures, sequential pay arrangements, and pro-rata distribution mechanisms that optimize capital efficiency while meeting varied investor requirements.
- Hedging and Risk Mitigation Structured transactions frequently require sophisticated hedging strategies to manage interest rate, currency, credit, and operational risks. We design integrated hedging programs using derivatives, insurance products, and contractual arrangements that provide comprehensive risk mitigation.
Why Choose Scorpion Capital
✅Proven track record with major financial sponsors
✅ Efficient execution and rapid deal closures
✅ Robust government and institutional relationships
✅ Strong presence in public-private partnerships
✅ Transaction advisory to NHAI, DIPAM, RLDA, Deendayal Port Trust, etc.
✅ Strategic disinvestment of PSU assets, PPP structuring, and EPC advisory
✅ Empaneled with over 20 public sector banks and several PSU bodies