We do Financial Engineering - but what is it?
After taking your seat on board the aircraft you expect the vehicle to takeoff. But before an airplane can leave solid grounds hundreds of engineers, designers, managers and craftspeople of all the different trades in the construction professions worked on making that possible.
Very similar, when a company strives to establish a financing vehicle in order to secure access to capital the contribution of many experts is needed. Some of them are financial engineers.
One can think of a company as a complex organism. It is alive as long as cash flows. Cash-flows are subject to threats and risks. In order to assess and control these financial engineers help by translating economic realities into models. Once the business is modeled one can derive risk and return drivers sometimes referred to as sensitivities.
Another field where financial engineers skills are needed is for the valuation of assets. This might be a simple exercise if prices of assets can be observed in the market but can be very difficult for illiquid assets where valuation is based on discounted probability-weighted future cash-flows.
A long Journey
Once entities have been incorporated, relations to banks established, service level agreements with service providers put in place, term-sheets with investors agreed ...
... it's time to execute the first transaction
On that journey wiseadvice will have contributed many of the milestones such as drafting term sheets and operating manuals, helping with the financial model, the overall structuring and managing the project.
The right Tools
Among the tools used by wiseadvice to design and implement the desired steps are applications for the valuation of financial instruments, developing financial models and simulating cash-flow streams, designing of consistent operating manuals and managing the involved parties and the project's single tasks.
Many of these tools have been developed by wiseadvice Systems & Consulting GmbH.
View on Port Louis, Mauritius
We have a long track record in structuring financial transactions and entities. If need be we go to Mauritius for our clients. Or Dar Es Salaam, Nairobi, Kigali , London, Helsinki, Brussels, Paris, Amsterdam, ... We negotiate with banks and perform the due diligence of partners and orchestrate local attorneys. We have a wide network that we make use of. However, we do not participate in projects that are motivated by tax evasion or other unethically motivated transactions.
Investor Relations Cycle developed by wiseadviceOn behalf of our clients we have negotiated with major banks and financing institutions such as FMO, BIO, Finnfund, IFC, Triodos, responsAbility, Sunfunder, IFC, AfDB, Ceniarth LLC, DfID, DWM Asset Management LLC, FINCA International, Finnfund, Lion's Head Global Partners, PG Impact Investments AG, Symbiotics SA, UK Climate Investments LLP GIB, USAID / Power Africa, ....
Based on our experience we have developed a model that we call "Investor Relation Cycle". According to the single components we support our clients in setting-up procedures and systems. On behalf of our clients we negotiate with equity and debt investors aiming to reach the best deal possible.
A lot in dealing with investors an prospect investors is about providing timely information with the appropriate level of accuracy. We are happy to help you here. Lern more ...