Structured finance is a cornerstone of modern real estate development, offering tailored funding mechanisms for complex projects that require layered capital stacks. Fraser Bond provides expert structured finance advisory services, supporting UK developers in navigating capital markets and securing bespoke funding strategies that match their development ambitions.
Structured finance refers to the combination of multiple capital instruments—typically senior debt, mezzanine financing, and equity—engineered to meet the unique risk, return, and cash flow profiles of real estate developments. It is particularly valuable for large-scale, mixed-use, or multi-phase developments where traditional lending may not suffice.
As explained by Mera Investment Management, structured finance allows developers to optimise returns while managing exposure and meeting investor expectations.
A well-designed capital stack may include:
Senior Debt
Typically offered by banks or institutional lenders and secured against the asset, senior debt is often the lowest-cost capital but the most restrictive.
Mezzanine Finance
Subordinated to senior debt but ranking above equity, mezzanine loans fill the funding gap and offer higher returns due to increased risk.
Preferred Equity
Offers investors fixed returns and priority distribution rights without requiring collateral, often used to preserve developer ownership.
Joint Ventures
Collaborative arrangements with equity partners who share profits and risks, often used to unlock access to larger capital pools.
Insights on how these instruments are typically layered can be found in resources like CBS Capital.
Structured finance advisors provide expertise in designing and implementing capital strategies that maximise value and reduce risk. Their services typically include:
Capital Structuring
Analysing the optimal mix of debt and equity for each project’s lifecycle
Lender and Investor Sourcing
Identifying and negotiating with senior lenders, mezzanine funds, family offices, and institutional equity providers
Term Sheet Negotiation
Securing favourable financial terms, drawdown conditions, and repayment profiles
Ongoing Strategic Support
Advising throughout the development process to ensure alignment with budget, market shifts, and exit strategies
For a deeper dive into the strategic importance of structured finance, J3 Advisory outlines key principles relevant to UK developers.
Fraser Bond delivers bespoke structured finance solutions designed to meet the demands of complex developments across the UK. Our advisory services include:
Feasibility and Capital Modelling
We assess project potential, returns, and risks to design the most efficient capital structure
Integrated Lender Engagement
Through our extensive lender and investor network, we identify and secure appropriate capital partners
Legal and Financial Coordination
We work closely with your legal and advisory teams to structure agreements and ensure full compliance
Market-Responsive Strategy
Fraser Bond continuously reviews and adjusts finance plans to align with changing market dynamics
These services are aligned with global best practices as outlined in the debt and equity advisory frameworks provided by Newmark.
Customised Solutions tailored to project specifics
Access to Capital via a broad lender and investor network
Strategic Insight that aligns funding with long-term goals
Efficiency and Speed in deal structuring and execution
Structured finance is essential for developers aiming to deliver high-value real estate projects without compromising on control, speed, or financial performance. Fraser Bond's structured finance advisory services provide the tools, insights, and network needed to fund and deliver success at every stage of the development process.
Contact Fraser Bond today to discuss how structured finance can unlock the full potential of your next development.
