Where a Project Finance Advisor Adds Value
An experienced project finance advisor's most valuable contribution is usually invisible: the problems resolved in the file before it ever reaches a credit committee.
Pre-financing structure optimization
Before financing discussions begin, the advisor helps align the project's capital structure (debt-equity balance, senior-subordinated debt tranches) with the sponsor's goals and market conditions.
This early optimization reduces the number of structural changes lenders will later demand and speeds up the process.
Managing competition among lenders
The advisor brings multiple potential lenders (commercial banks, DFIs, private credit funds) into the process in parallel to create a competitive environment for the sponsor.
That competition can improve not just price in the sponsor's favor, but also the flexibility of contract terms and the scope of collateral requirements.
Coordinating the due diligence process
Lenders' independent technical advisor, legal counsel, and environmental advisor often ask different questions at the same time; the advisor coordinates this process so the sponsor uses time and resources efficiently.
A poorly coordinated due diligence process can lead to the same information being prepared repeatedly in different formats, creating unnecessary delays.
Preparing the credit committee presentation
The advisor helps present the project's strengths and how risks are managed in a way that fits the credit committee's decision-making framework; this requires as much clarity of presentation as technical accuracy.
An experienced advisor anticipates the credit committee's most common questions in advance and answers them within the file, speeding up the process.
Sustaining the relationship after closing
The advisor's role usually doesn't end at financial close; many advisors also support maintaining the lender relationship, managing reporting obligations, or identifying a future refinancing need early.
This ongoing relationship is one of the most common reasons sponsors choose to work with the same advisor for future financing needs.
Project and Development FinanceOur project finance and development finance advisory turns investment projects into financeable structures whose repayment rests on the project's own cash flow.
Learn moreFrequently asked questions
How is the advisor's fee typically structured?
Most often as a combination of a fixed advisory fee and a success fee tied to financial close.
Can a sponsor negotiate directly with a lender without an advisor?
Yes, but processes run without an advisor, particularly on complex projects, typically take longer and result in less favorable terms.
At what stage should the advisor be brought in?
Ideally as soon as the financing need becomes clear, even before the project structure is finalized.
NART Insights
Concession-Based Financing in Airport Projects
An airport is a very different asset class from an aircraft; its financing generally depends on the term and conditions of the concession agreement.
Learn moreAircraft Engine Financing and Maintenance Reserves
An aircraft engine can behave like a financial asset separate from the airframe, and it requires its own maintenance reserve regime.
Learn moreFuel Risk and Hedging in Airline Valuation
Fuel — an airline's largest variable cost — is also one of the most contested assumptions in valuation analysis.
Learn moreStart a mandate discussion
Tell us about your capital requirement, your transaction idea or your structuring problem. The first assessment meeting is free of charge and strictly confidential.