A contract, licence or regulated framework must establish the revenue and state its term. Merchant exposure is accepted only as a minority component of a position.
The payer is examined as closely as the asset, since the income is only as good as the entity behind it. Public bodies, regulated utilities and investment-grade off takers each carry a distinct credit profile, and pricing reflects it.
Indexation preserves real value across a twenty-year hold, and it is a requirement in positions held for institutional investors. Where an escalator is absent, the position is priced as a shorter-duration asset.
Contractor covenant, planning status and utility connection are examined ahead of financial terms. Most infrastructure losses originate during delivery, which makes this the section of a paper we read hardest.
Security packages, step-in rights and cash flow waterfalls determine what Bronti Capital recovers should a project underperform. These are settled at entry, when there is still leverage to settle them well.
Every position is entered with at least two realistic exits, whether refinancing, sale to a core institutional buyer or transfer inside a regulated asset framework. A single theoretical exit is treated as none.
Opportunities reach Bronti Capital through public procurement notices, developer relationships and the networks of our investor-partners. Each is screened against mandate and existing sector exposure before any resource is committed to it.
The revenue documentation is read before commercial discussion begins. Licences, offtake agreements and concession terms are marked up by counsel at this stage, well ahead of heads of terms.
Independent technical, valuation and legal work is commissioned to a scope set by the risks identified during instrument review. That keeps diligence spend proportionate to the questions carrying weight.
Sensitivities are run on the downside case first, and a position is sized against the scenario in which it disappoints. Approval turns on whether the structure holds in that scenario.
Positions are monitored against the contract, with covenant compliance and delivery milestones tracked through construction and into operation. Underperformance is addressed while the contractual remedies still have force.
The exit assumed at entry is retested against market pricing as the position matures. Bronti Capital acts once the route is available on the terms modelled.
Fixed-price contracts with capable counterparties transfer the exposure, and retention alongside liquidated damages prices what remains. Bronti Capital takes construction risk where the contractor covenant supports it.
Public payment mechanisms depend on sustained political support. We favour revenue founded in statute or licence, which carries protection that survives a change of administration.
Long-life assets financed with shorter debt carry maturity exposure. Bronti Capital models refinancing at stressed margins and sizes senior debt, so a position holds on its own terms.
Fund structures retain reserves for capital calls and operating requirements, which preserves our ability to sell on timing of our own choosing.
Access to institutional-scale positions that a single office would find difficult to underwrite alone, with reporting written in the language a principal understands.
Indexed income of a duration that matches long-dated liabilities, supported by documentation their own advisers can interrogate line by line.
Structures prepared to lender standard from the outset, which shortens credit approval and improves the cost of debt across our transactions.
Public infrastructure transactions are large by design, and government guidance on private infrastructure investment sets a working floor around £25 million with major commitments running past £100 million. Bronti Capital assembles capital across its investor base for single projects, which allows a family office to take a position in a scheme it would otherwise watch from a distance.
Bronti Capital will take you through a live structure, the instrument behind it and the terms on which capital is being accepted.
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