Services

Summary of Services for Capital Raising Engagement

Skylatus meticulously reviews the client’s underwriting model for accuracy and makes suggestions for improvement. If the client does not have an underwriting model or if the existing underwriting requires improvement, Skylatus will create an institutional quality model on the client’s behalf.
The Skylatus team leverages their experience of sitting on investment and credit committees to create an institutional quality offering memorandum that is tailored to the way committees think. This increases the likelihood of deals getting approved.

The advisor takes the client’s model at face value. If the client does not have an underwriting model, an analyst with limited experience will create a simple model by entering numbers into a template.
An analyst with limited experience creates an offering memorandum by filling blanks into a template.

Prior to distributing the deal to capital providers, Skylatus will create shortened versions of the client approved underwriting and offering memorandum. Rather than inundating capital providers with heaps of data, shortened files are used to quickly grab the capital providers’ attention among the piles of other deals on their desks. Prior to showing the deal to a larger audience, the client’s deal will be shown to capital providers that Skylatus has long term relationships with.
A senior Skylatus team member with investment experience answers all questions from capital providers. This ensures that questions are strategically answered in the most favorable manner.

An analyst prepares a mass email blast and broadly distributes the client’s deal to the investment community. The deal no longer feels exclusive. Capital providers question whether the deal is a good use of their time given the number of groups that it has been sent to. Despite the broad marketing effort, certain qualified capital providers may be excluded from the analyst’s email blast due to territory issues within the analyst’s brokerage firm.
An analyst fields questions from capital providers and periodically loops in a senior broker.

Skylatus will create separate financial models to evaluate the effective cost of capital of each lending and investment option. The cost of capital is weighed against the financial risks of each deal, including compliance with lender stipulations such as debt yields and debt service coverage ratios. Skylatus discusses the results of the analyses with the client and has a collaborative discussion before choosing the top contenders for the deal.

A broker presents the capital options to the client. However, since an analyst handled much of the upfront work, the broker relies on the analyst to understand the pitfalls and risks of each capital option.

Once the top contenders are identified, Skylatus negotiates each term sheet from top to bottom. The financial models that were previously created are subsequently updated to gauge the impact of the term sheet changes upon the returns of the deal.

Once the top contenders are identified, a broker negotiates each term sheet. However, the broker typically lacks firsthand investment and lending experience which may make their guidance questionable. Without that experience, the broker may not fully understand the implications of the finer points within the term sheets.

The Skylatus team charts a course for a smooth and expeditious closing.
Skylatus will facilitate the delivery of the due diligence information that the capital provider requests from the client. Skylatus will review every single piece of information to identify any concerns and to make sure that all data is presented in the most favorable manner possible. This is a critically important step and if a thorough review is not performed, one piece of information can end up jeopardizing a deal.
Skylatus will coordinate the ordering of all third-party reports that are required by the capital provider if the capital provider will allow Skylatus to do so.
Skylatus will facilitate the delivery of information to the appraiser and thoroughly vet each piece of information to ensure that it supports the desired value.
If the capital provider permits it, Skylatus will read the draft appraisal from front to back and redline the document with suggested changes. Skylatus will talk with the appraiser about the report with the goal of increasing the property’s value.
Skylatus will coordinate and lead weekly calls with the capital provider to ensure that the closing is on track.
For hotel deals, Skylatus will evaluate the need for a seasonality reserve and for other hotel specific provisions that may be beneficial to the client.

A Skylatus investment professional will read all loan documents and joint venture agreements from front to back and redline the documents with suggested changes. Aside from the provisions that are customarily important, Skylatus will pay attention to provisions that are often overlooked that could materially impact an investment.

Skylatus will review and coordinate settlement statements.
Skylatus will review the client’s legal invoices and point out any time that may have been overcharged.
Skylatus will work with the capital provider and legal counsel to make sure that all final and executed documents are compiled and delivered to the client post-closing.
Skylatus will help the client fulfill any post-closing obligations that are imposed by the capital provider.