One size does not fit all. This is the basis of market economics. However, financial intermediaries at the heart of the economic system still seek to apply standardized financial products where they do not fit.
The problem is acute in the case of leased property. The investment characteristics of leased assets with creditworthy lessees are quite different from the investment characteristics of owner-occupied farms and residences, yet financial intermediaries limit asset investors to variations on a single financing theme for all leveraged property.
Electrum Partners addressed this problem by designing and developing a line of proprietary financial and investment products that use the investment characteristics of leased property to improve the risk-reward investment trade-off for all classes of capital. The possibility of such products arose when Richard Graff, one of the principals of Electrum Partners, created a conceptual investment model for leased property that makes it possible to describe and quantify differences in the investment characteristics between leased and unleased property.
Our research and development program created lease-based synthetic debt. This forms the basis of our proprietary financial technology for the leveraged acquisition of leased assets without encumbrances on asset ownership. Within the confines of restriction to creditworthy leases and lessees, our technology is more flexible than previous forms of lease-based finance.
Unlike leveraged leases and synthetic leases, five-year financings, twenty-five year financings and everything in between are all eminently feasible. We can refinance synthetic leases to maintain lessee control over the leased property and its appreciation potential, and also keep replacement financing off the lessee balance sheet.
The principals and financial research program of Electrum Partners are described on this web site. Our proprietary version of synthetic debt and its varied financial applications are described in detail on our Synthetic Debt Resource Site at www.syntheticdebt.com, which we invite you to visit.
Our patented technology is the basis for the finest lease-based financial products available. To learn whether the most innovative financial technology in the marketplace is appropriate for your current needs, we encourage you to contact our principals.
Asset-backed finance, financial investment solutions, synthetic debt