EXPANSION
CAPITAL
SOLUTION
Keston uses its industry relationships in private securities lending and banking to provide expansion capital for its partners by leveraging their existing funds to secure investment grade bank bonds that are subsidized for capital infusion into their business in exchange for preferred ownership.
OUR SOLUTION IS UNIQUE
Expansion Capital Solution (ECS) turns project or business owners secured investment into funding for their project or business subsidized with bank instruments within 35 days. We leverage the project or business owners capital reserves under a special purpose vehicle (SPV) structured to invest in their project or business.
The SPV purchases the bank bond at a fraction of its value secured by the project owner's capital reserves via a promissory note endorsed by their bank with a maturity of 120 days.
The bond is acquired then leveraged for project funding purposes. A portion of the instrument’s value is allocated to repurchase 100% of the project owner's equity in the SPV for an exit; the balance in turn is used to purchase the agreed equity in the project owners project or business.
THE ECS OBJECTIVE
The objective of the ECS is to leverage the project owner’s dry powder or capital reserves to yield funding for their project prior to the maturity of their 120-day note by no less than 60 days
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