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Private Equity For Construction Companies

Developing real estate property with private equity for construction companies.

Private Equity For Construction Companies

construction joint ventures

When it comes to property development it’s nearly always better to begin sooner rather than later.

That’s true for obvious development land lying fallow, empty buildings mothballed for refurbishment and any other opportunities banked up in some way for a future day.

It has been my own experience that there are vastly more development opportunities out there than could ever be taken advantage of and a crucial part of a job like yours becomes appraising your opportunities financially, ranking them to see which ones would be best to pursue.

Having done that though, the next big thing is having sufficient capital.

While banks will typically provide 60% of project funding the issue for you now distils down to the matter of how much equity you have to put your projects together.

And this is where Windrush Equity can help.

New Equity Investment Provides Leverage & Gives Access To Larger Opportunities

An injection of private equity, perhaps even for a new portfolio of projects, would have the effect of you being able to now take on perhaps several projects simultaneously. It provides leverage and becomes a gateway to projects of a size you wouldn’t previously have been able to have access to.

The size of a new project could be calculated as follows:

Project Size = EquityNew + EquityOld + Bank Loan

= EquityNew + EquityOld + 1.5 x (EquityNew + EquityOld)

= 2.5 x (EquityNew + EquityOld)

= 2.5 x EquityNew + 2.5 x EquityOld

Able To Raise Tall Buildings In A Single Bound

Becoming able to raise tall buildings in a single bound becomes entirely possible with an injection of new equity. And when the New Equity is a multiple of the Old Equity rather than merely a fraction of it, you'll really be taking your company forward leaps and bounds.

Of course, a construction company needs to be ready within itself for such growth. But then, you'll know if you are.

And because you are, you'll be bulging with opportunities.

You'll be bulging with human potential from the projects you've already been doing, you'll have the tradesmen, you'll have the civil and structural engineers and you'll have the architects. You'll have the middle management and the ability to expand everything quickly.

But you might not actually have the money.

Until now.

A Limited Liability Partnership For Our Opportunitiy Together

At Windrush, we're looking to go into joint venture arrangements with construction companies who have development opportunities. Our investor clients are looking for project-specific opportunities where their capital would be committed for the duration of a construction project alone. However, some are looking for opportunities where their capital can be kept in continual employment with a developer who has a train of development opportunities in a pipeline. Others still, are looking to harvest income from their capital investment over the years.

Both project-specific opportunities and opportunities involving a sequence of projects would be contained within a special purpose vehicle such as a Limited Liability Partnership (LLP) where your autonomy in your core construction company would be retained.

So if you think there would be a possibility that we could do a joint venture together then perhaps we should get together for an informal chat.

New Construction with Investment of Private Equity Development Projects

Construction companies grow their share value with new private equity investment