What Makes a Good Counterparty?

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MARKET INSIGHTS

March 19th, 2024

In the world of Commercial Real Estate Debt (CRED), choosing the right counterparty is fundamental to securing quality transactions that deliver the right outcomes for all. And as an investment fund, that’s exactly what we’re here to deliver.

At Bowery, professional integrity is one of the first things we look for – and we’re rigorous in our search to select the right partners. At the heart of it, we work with real people with shared values, and in exchange provide flexible funding solutions to help our partners realise their ideas.

With the right partnership, success comes smoothly.

So, what does a ‘good’ counterparty look like to us?…

1. Integrity and character: people matter

We’re in the business of helping developers build their vision and reach their goals, and so it makes commercial sense that visions and values align from the offset.

We prioritise the human element up front. It matters that we’re working with good people, and form relationships based on a foundation of honesty, transparency and respect.

Even if the numbers work, the clincher for whether or not we’ll back a project comes down to the person in front of us. Ultimately, we need to be sure the borrower has the integrity to work to the game plan and deliver the project.

Beyond integrity, given the dynamic realities of the real estate market, having a counterparty that can flexibly work around hurdles with a solutions focused mindset is critical.

Bumps in the road we can work around, but transparency from the offset is non-negotiable. It’s about setting the tone for a respectful business relationship before we enter into a deal.

White 2-storey House Near Trees

2. A strong, commercial WHY and demonstrable experience

We know that quality transactions make for quality returns for our investors. So we will delve deep into the WHY behind your commercial decisions.

How do we evaluate this?

Financial viability is important. We look for evidence of a solid plan – a roadmap for execution, which offers a transparent path through to exit. A solid track record and the right team of experts and consultants, equipped to handle the project complexities and challenges, will further bolster confidence.

Borrowers overextending in areas lacking specialist skill sets can be a red flag, but we’re in the business of backing good people and looking for ways to help them get their projects over the line.

Key benefits of private debt.

Diversification and portfolio risk management.

Income generation through fixed income streams.

Private capital can provide consistent cash flow, strengthening your financial position through regular monthly income. This is because of how the asset class is structured. Interest payments are often collected upfront from borrowers. As such, investment funds such as Bowery offer fixed interest paid monthly to the investor, creating a dependable income source that can supplement your cash flow and financial stability.

Stability.

As well as adding stability to an investor’s portfolio via diversification, private capital investments are, in themselves, known for their relative stability. This is because they are typically secured against first mortgages, adding an extra layer of security for investors.

The opportunities also come with predetermined terms and maturity dates — predictability that means investors can plan and manage their financial goals with confidence.

Combined, these two factors make private debt investments a popular choice for sophisticated investors.

Men in suit jackets shaking hands

Your private debt partner.

Private capital is more than just a growing trend; it’s a well-established asset class that can provide diversification, income generation, and stability in your investment portfolio. Whether you’re a fund manager seeking an alternative investment class for your clients or an investor looking for a consistent return on investment, Bowery Capital is here to provide you these investment opportunities.

We’ll ensure you harness the full potential of private debt as part of your investment strategy looking to provide better returns and financial securityLet’s get together and explore the opportunities that private debt can offer you.

Let’s do this.

You didn’t come here by chance.
You came here because you wanted to invest in your future. So, why wait?

Whether it was to invest or borrow, let’s take this first step together.

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