Preissuance deal support for an institutional investment bank

  • Pre-issuance

    modeling & structuring support

  • 20%

    more client-facing time for senior bankers

  • 15-20%

    reduction in time to close deals

  • $300K+

    savings through our support


CLIENT CHALLENGES
  • The client was engaged as an underwriter for several new asset types for the first time in APAC
  • Acuity Knowledge Partners was approached to develop models/ tools for such transactions that could project cash flows under different sets of credit assumptions
  • The first transaction Acuity Knowledge Partners worked on was a CLO deal
  • The initial capital structure, collateral,and rating agency criteria were provided to develop a flexible model/tool to handle both asset and replinelevel credit modeling
OUR APPROACH
  • Acuity Knowledge Partners assigned an expert Excel VBA modeler to the project, who worked under the guidance of structured finance subject matter experts
  • In the preliminary stage, a typical CLO waterfall and capital structure were modeled, supported by a dummy asset pool
  • Functionalities were added next to dynamically change the assets, payment waterfall, capital structure,and credit assumptions
  • Finally, transaction actuals (different proposals) were incorporated and rating agency stresses were run to optimize the final capital structure and terms
IMPACT DELIVERED
  • As the client was working on multiple transactions, it benefited from Acuity Knowledge Partners expertise in deal modeling/structuring
  • The model/tool provided flexibility to dynamically change transaction terms, credit assumptions, asset characteristics, liability structure, etc., which helped in finalizing the capital structure
  • With Acuity Knowledge Partners performing the required modeling tasks and analytics, the client could focus more on increasing the deal flow, market developments, and other clientfacing activities
  • This partnership proved to be a scalable model for the client, compared with hiring and training employees when deal volumes increase
Thank you for sharing your details

Your file will start downloading automatically

If it does not download within 1 minute,

Share this on

What we have done

Structured Finance research and analytics for a global Investment Bank
What we are proud of

>50%

savings in staffing costs

25%

increase in outreach