NEUTERING THE FINANCIAL RISKS OF PROJECTS
KPO goes beyond capital preservation, acceptable risks, and commensurate returns
The investing world is emerging from a three-decade period focused on IP accumulation into a new age of investment in industrial & physical assets that can run a frighteningly evolving word. Capital preservation, acceptable risks, and higher returns are the starting point. The point, however, is to make money as soon as these assets come online. And the goals? Predictable earnings, sustainable EBITDA, and a chance to mold a new generation of industrial leaders. Project investing done right is key to this new age of investment.
KPOs solves three challenges that stand in the way of investors’ success:
1) Identify viable project financing opportunities
2) Protect investors’ interests (reputation and capital) until earnings start rolling in
3) How to make their investments impactful
The Investor is King
KPO’s philosophy considers a project as the means to an end, which is to deliver a profitably performing asset. Since financing is the enabler of any project, the success of the Investor is the prime directive. This means that, throughout the engagement process with a project owner: 1) the investors’ time is respected; 2) their reputation is preserved; 3) their capital is protected during delivery; 4) the delivery carries certainty of execution; 5) the outcome will be a profitably performing asset; and 6) the asset will maximize their ROI throughout its economic life.
Corralling and neutering financing risks
KPO has developed a proprietary management framework for corralling and neutering a project’s financial risks. The framework places the control of the disbursement of the project funds in the hands of KPO, instead of the project owner. KPO functions as fiduciary agent of the Investor throughout the execution of the project. Both the funds and the progress of the work are subjected to a formal review and approval process, and in force until the asset becomes operational. Together, they provide KPO and the Investor a continually audited assessment of a project’s scope, budget, and schedule.
Built-in backup position if things go off the rails
KPO is always available to take on a PMC or PMO mandate over a project, at the request of an Investor who prefers the certainty of a seasoned, battle-hardened team of project professionals over the unfamiliar capabilities of an owner’s project delivery team; or, when an existing project is clearly suffering from an owner’s project team shortcomings.
The benefits to the Investor? Full transparency of the uses of funds; certainty of execution; sedulous cash flow management; accountability of financial transactions; and integrity of the project’s decision-making process.
The outcome? The Investor’s capital and reputation are preserved at all times.
Investment diversification
KPO’s never-ending expansion of project opportunities across the globe provides Investors the opportunity to diversify their holdings in scope, location, and financial exposure. How? By assembling two or more small projects from one sector (typically needing between $5M and $20M), into individual portfolios valued at $50M or more. The portfolios can also be structured along national boundaries, to satisfy investor requirements.