Today’s capital markets are more complex and interconnected than ever before. Identifying and selecting an alliance that can support your transaction with a broad range of services from inception to maturity is essential to deliver efficient execution and ongoing administration. Working with a relationship-oriented provider means you have a dedicated Relationship Manager to support your business and all your transactions. It is important to choose a firm that has a diverse range of products with the ability to support clients from across the asset spectrum, including Asset Managers, Non-Bank Lenders, FinTechs, Mortgage Originators, Real Estate firms and Banks.
Capital markets participants can benefit from the services of an experienced and knowledgeable corporate trust provider, but choosing a provider requires careful consideration and confidence that your provider illustrates these key attributes:
- Deep, specialised experience in your type of transaction
- A proven track record of success
- Access to resources required for a particular transaction
There are also several factors that separate some providers from others in a complex marketplace. These factors can mean the difference between getting a transaction done and getting it done well.
Neutral and impartial organisation
Parties benefit from a neutral and impartial trustee. The organisation should be a non-creditor and free of any other conflicting activity. However, this is often a challenge for large institutions with several lines of business that may be managing multiple transactions simultaneously. When choosing a trustee, you may want to carefully vet an organisation for all potentially conflicting relationships or positions.
Fast and precise onboarding
Onboarding can be a cumbersome process, and it’s best to choose a provider with the quickest process. However, as important as speed and efficiency are, accuracy and a comprehensive market knowledge when managing details are also important. Information-gathering requirements have become more stringent in recent years, and information obtained during the onboarding process must be continually reviewed. The process of gathering this information fully and accurately can be time consuming, but is a significant step. While efficiency is important for today’s fast-paced transactions, equally important is the confidence that your provider has experienced document reviewers to facilitate efficient contract negotiation and transaction closings.*
Long history of client service
A long history of client service, responsiveness, and nimble performance are qualities that may be sought in a potentially selected partner. A firm that specialises in trustee and agency services usually hires experienced professionals; those who can quickly learn a client’s business and bring a personalised level of service. Corporate Services specialists who can navigate government departments and incorporate Special Purpose Vehicles (SPV) economically and efficiently are one case in point. Similarly, some service providers are more experienced than others at administering cash flow waterfalls and investor reporting requirements in a timely manner so that investors are kept informed and receive debt service income on time.
A corporate trust provider should work collaboratively with your other advisors and service providers as efficiently as possible. In many cases, your law firm, investment bank or other trusted party can recommend a party they have worked with before to promote optimal teamwork and outcomes. Internally, the corporate trust provider can assemble a group of specialists who have worked together and can function seamlessly as a team from day one of the engagement. There are few substitutes for professional and shared experiences.
Single point of contact
As important as teamwork is, maintaining a single point of contact with your provider ensures you are able to build a relationship with them and they are able to tailor their service to meet the requirements of your business. This does not mean that you are not able to interact freely with subject matter experts as needed, but means you have a dedicated relationship manager who is responsible and accountable for the team’s work.
Selecting a Corporate Trust Provider can be important to the success of any transaction. But in today’s environment marked by greater scrutiny and the need for quick, accurate, and transparent execution, selecting the right provider can enhance the success of your transaction from inception through to maturity.
Take advantage of our experience establishing and operating complex financial transactions and entities through our international presence and skilled professional teams.