Corporate Finance Division
Infrastructure Industry Venture Capital
Infrastructure is the building blocks of any place, be it a village, a town, a city or a country. Infrastructure includes the basic and necessary facilities that are essential for the modern economy to run and survive. In general, it includes roads, highways, bridges, power plants, railways, airports, electrical grids and telecommunication facilities. All the above components play a decisive role in the development of an economy. No country can expect to be tagged as rich and successful until it has world class infrastructure.
Aging infrastructure assets require substantial investment, but capital constraints on the part of government entities are increasing the attractiveness of private participation in infrastructure development projects. At the same time, newly accessible supplies of energy are necessitating the expansion of existing infrastructure to connect production sources with end markets. SJM Capital seeks to capitalize on these evolving industry dynamics by originating, owning and operating infrastructure and related investments, primarily in North America.
Fostering Growth without Diluting Equity:
For Infrastructure companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Infrastructure companies, but we also understand the growth process - and occasionally the growing pains - they undergo.
When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:
Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing
Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation
Retain a larger ownership stake in the company prior to an IPO or other liquidity event
Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly