Securing your CAP funding guarantee (DFY premium service)

Checklist of requirements for “Done for You” (DFY) guarantee services

In3 and our registered affiliate can coach developers to facilitate their own project’s guarantee without initial cost, but for In3 to take responsibility for securing a guarantee used for bespoke CAP funding, a premium fee-for-service commitment would be requested from the developer’s side.

This works best when the project or portfolio is within In3’s “sweet spot” focus areas (more), which as of early 2024 is primarily focused on three areas — waste-to-value (especially 5th generation tire pyrolysis), regenerative community development, from hospitality to housing, and sustainable/regenerative food and other climate-smart solutions, from food to forests.  We will also consider sufficiently strong projects in renewables, affordable, green and/or social benefit housing, resource recovery such as ammonia for green hydrogen, and solutions in the developing world.

The DFY structure is a type of “joint venturing” — a partnership, of sorts — that “curates” and features your project or portfolio, once thoroughly vetting, as an opportunity for a third party asset owner in our network to leverage their available assets as a completion assurance guarantor.  Typically, these are asset owners and managers that wish to preserve available cash, but can gain substantial upside by pledging non-cash assets to back one or more projects per well-proven, international Demand Guarantee rules (URDG ICC 758). We can securitize the project and everyone gains confidence it will be completed.

In3 can only deliver such services under a “pay to play” contract where the vast majority (but not all) of our compensation results from completion.  This is the partnership aspect of a “shared risk, shared reward” service model.

Why is such a fee structure necessary?  To prepare to gain support by guarantors requires that we demonstrate quite clearly that your project upholds the highest quality standards and that you and your team have the utmost of integrity, skill, track record and commitment.  Your proposal must be transparent about remaining risks and consistent with how you talk about it.

When discussing your project’s proposal with sponsoring guarantors, they will assume that we have thoroughly vetted and stand by all the performance targets, agree with and can defend embedded assumptions, and have found your project team to be credible, entirely straightforward, transparent and trustworthy.  In other words, our reputation is at stake, which is arguably the most important and valuable asset any business has going.

Further, to keep a level playing field, a fee paid ahead of closing is required as a good faith deposit in order to prioritize your project vetting and guarantee work on par with other DFY clients, all of whom paid to be there.  To do otherwise would be both unfair and impractical.

Featured projects are already vying for attention from asset owners in our cadre who look for projects that fit their “sweet spot” so they can back them with the same confidence our family office gains before committing to funding.  Similarly, we must be committed before it will be possible to go the distance with guarantors, putting our reputation on the line at each step of the way, where both objectivity and “skin in the game” drive the negotiations to reach closing.

In case you do not have cash for this DFY guarantee service, here is the alternative pathway and several convenient guides to assist: