Costs, Fees and Structure of Our Intermediary Investment Services

Investment Intermediary Fees

Sponsors ask about cost before they ask about anything else, and they are right to. Klean Capital structures investment intermediary fees so that the bulk of the economics is earned at financial close, when capital is actually drawn and the sponsor has something to pay it from. Fee architecture is agreed in writing in the mandate letter before any work begins, so there is never ambiguity about what is chargeable.

How the fee structure is built

A typical mandate separates three components. The first is preparatory work — financial modelling, document assembly, technical and commercial review — which is scoped as a defined piece of work rather than an open-ended retainer. The second is the arrangement or success element payable on completion of the funding. The third covers third-party disbursements such as independent engineers, valuers, legal counsel and specialist technical consultants, which are passed through at cost and approved in advance.

Why success weighting matters

Weighting the fee toward close aligns the intermediary with the sponsor. An adviser paid mainly to prepare documents has no reason to say a project is unfinanceable; an adviser paid mainly on completion has every reason to say so early, before months of cost are sunk. That is why Klean Capital screens hard at the outset and declines mandates it does not believe the market will fund. It is cheaper for everyone to hear no in week one than in month nine.

What drives the cost of a transaction

Cost scales with complexity, not simply with ticket size. A sale and leaseback of a single tenanted commercial building with a strong covenant is a short, clean process. A greenfield waste-to-energy plant blending private equity, senior debt, mezzanine and PPP funding, with feedstock supply agreements, offtake contracts, planning consents and an EPC wrap to be reconciled, carries a far heavier workload. Private Placement Investment Grade Bonds placed with institutional investors add their own documentation and rating workstreams.

Where sponsors save money

The single largest saving comes from preparing properly. Projects that arrive with a bankable feasibility study, a defined construction route and credible counterparties move through the market quickly and cheaply. Klean Industries provides feasibility studies, due diligence, energy and waste audits, and turn-key EPC (DBC) delivery inside the same group, so gaps identified during financial structuring can be closed by engineers rather than papered over. Since 1998 the team has raised funding for over a hundred different transactions, and that repeat relationship with investors shortens diligence cycles and reduces the cost of getting to close.