Private Lending and Investing can be a tricky minefield, with projects presented in a “can’t miss” narrative by Sponsors who understandably see projects through rose colored glasses. Private lending or Equity Investment alternatives will only be presented by J Moss and Co after careful analysis of the Project and the Sponsors. Upside potential will be presented along with downside risks because we all know and are well experienced in Murphy’s Law.
We are often asked if we are Lenders or Brokers.
Our response to this is that we are an Investment Banking Group with a mission of structuring your deal, completing an initial level of underwriting to determine that it has merit and the Sponsor group is capable of being successful. After creating a Project Summary document, we then discuss with our Investment Fund partners. If an Investment fund agrees with our initial assessment, a Term Sheet is issued and if accepted by the Borrower, a thorough underwriting begins in hopes of a successful closing. And yes, we may participate in the transaction ourselves.
We have spent many years in the Lender/Investor chair while serving on various Loan and Investment Committees. We understand we must be right 99% of the time which keeps us responsible to our Investors. We will review the Sponsor’s ability and experience in completing similar transactions. We will make sure the Sponsor has “skin in the game” and that their risk is greater than the Lender.