Legal structuring

A Savoyard builder putting up a chalet begins with the foundations, and it is the least visible work that decides whether everything else will stand. In an RWA project, the foundations are legal. The vehicle that carries the asset, the securities it issues, the contracts that bind each party, the guarantees that protect investors. A well-designed structure weathers crises, survives the failure of a provider and inspires confidence in regulators as in banks. A badly designed structure exposes the project to requalification, to disputes and sometimes to ruin.

The approach

Structuring follows a logical order, which experience recommends respecting.

It begins with the asset. Its nature, location, cash flows, lifespan, risks and valuation determine the constraints on everything else. An income-producing building in France, a portfolio of SME loans in Europe, a solar plant in Spain or a stock of wine call for different structures.