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Easing complex transactions: project finance case studies, project finance is complex, which is a why a corporate trust partner with comprehensive capabilities is a critical piece of the puzzle..

Improving the country’s aging infrastructure is a top priority, and the $1 trillion Congress recently committed to infrastructure spending will likely kickstart a host of new building projects. At the same time, the American Society of Civil Engineers estimates that the United States needs to spend $4.5 trillion by 2025 to “fix” the country’s infrastructure.

What that means for stakeholders across the infrastructure industry is a growing pipeline of projects, along with the need for project finance expertise to help move projects forward. Bringing those projects to a successful close requires proven expertise, experience and strong communication processes, as well as an ability to work seamlessly with a number of parties and an ability to understand and navigate project finance risks.

As a leading global corporate trust provider , U.S. Bank has experience working on many complex transactions.

“We’ve seen many different approaches to these financings, and we have the ability to come to the table, apply our expertise from prior transactions in the documentation process, and help our clients reach the best outcome on how they’re going to put these complex financing packages together,” says Bob Kocher, managing director, U.S. Bank Global Corporate Trust.

That expertise was recently highlighted in two major project finance projects, where U.S. Bank served as a trustee in bond issuances in the capital stack of the Red River Diversion Project at the Minnesota/North Dakota border and the Central 70 Project in Colorado.

Red River Diversion project

In an infrastructure industry that is no stranger to large, complex projects, the Red River Diversion Project is a notable standout. The $3 billion project is more than a decade in the making, with numerous stakeholders and a mix of funding sources. It’s also a landmark public-private partnership (P3) project in the water infrastructure industry.  

The Red River Diversion project represents the first use of the U.S. Army Corps of Engineers’ P3 Pilot Program to reach financial close. The aim of the program is to improve collaboration between the public and private sectors, as well as develop a more efficient alternative financing model for future Corps infrastructure projects.  

The Red River Diversion project intends to provide permanent, reliable flood protection to the Fargo-Moorhead metropolitan area. The Red River serves as the state border for much of Minnesota and North Dakota and cuts through the center of Moorhead, Minnesota, and Fargo, North Dakota. Spring flooding in the Fargo-Moorhead metro has been a chronic problem for decades.  

The solution is the development of a 30-mile diversion channel. The Army Corps of Engineers is overseeing design and construction, with completion scheduled in 2027.  

The Red River Diversion project involved a number of intricate financing sources that were woven together, including developer equity, federal and state funding and $1.1 billion from local tax levies. The Metro Flood Diversion Authority worked with the U.S. Environmental Protection Agency to obtain one of the largest Water Infrastructure Finance Innovation Act (WIFIA) loans in the program’s history, at $569 million. In addition, project financing included $273 million in tax-exempt senior bonds issued through the Wisconsin-based Public Finance Authority.  

According to the Corps , the Red River Diversion P3 was an “innovative approach leading to significant gains in efficiency, productivity and resiliency” that saved the federal government $277 million and shortened the construction time by 10 years.  

As part of a competitive bid process, U.S. Bank was selected in April 2021 to serve as the bond trustee on the bonds issued by the Wisconsin Public Finance Authority, as well as filling additional roles as the account bank, collateral agent and dissemination agent.  

Once U.S. Bank was selected as trustee, it needed to get up to speed quickly with all documents, provide comments regarding duties and liability and communicate to all parties its views on how the transaction should work as it related to the daily activities of the trustee.  

“This trustee deal had a tremendous amount of document turnarounds as a result of the complexity of the transaction. It required attention to detail to ensure changes were consistent throughout all the documents,” says Angela Davis, relationship manager, Global Corporate Trust at U.S. Bank.  

Keeping communication and workflow on track is a testament to the U.S. Bank team’s diligence in tracking documents, as well as its proactive approach to the collection and distribution of project information and covenants.  

“Through our hands-on partnership and ability to work efficiently with other business lines inside of U.S. Bank, our client received everything they needed to keep this project moving forward,” says Davis.  

Collectively, the U.S. Bank team will serve as the operational and administrative end of the financing, following the documents, administering the movement of funds and making sure the money is moved from account to account properly. U.S. Bank will be responsible for the billing and collecting funds to pay holders of the bonds and senior notes through 2056.  

“P3 projects are the wave of the future, and U.S. Bank is at the forefront of that shift in how infrastructure projects are financed,” says Kocher.

“We can come to the table, apply our expertise from prior transactions in the documentation process, and help our clients reach the best outcome.” Bob Kocher, managing director, U.S. Bank

Central 70 project

Interstate 70, between I-25 and Chambers Road in Denver, is a key corridor that services nearly 1,200 businesses and provides an important regional connection to Denver International Airport. The  Central 70 Project  will reconstruct a 10-mile stretch of I-70, add one new Express Lane in each direction, remove the aging viaduct and create a four-acre park over a portion of the lowered interstate between Brighton and Colorado Boulevards.  

The Central 70 Project involves the refinancing of a 2017 Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, along with the financing of additional costs. As part of the refinancing, the U.S. Department of Transportation’s (DOT) Build America Bureau provided a new TIFIA direct loan with a reduced interest rate, allowing for additional loan principal increase to facilitate project completion.  

Besides TlFIA, the project is backed by the proceeds of tax-exempt private activity bond and taxable bond issuances, as well as contributions from the state DOT, the Colorado Bridge and Tunnel Enterprise, the High Performance Transportation Enterprise, and local and state entities .  The Series A bond issuance totaled $51,670,000 and the Series B bond issuance totaled $464,955,000.  

U.S. Bank served as bond trustee and acted in ancillary roles as the collateral agent and intercreditor agent, paying agent, registrar, transfer agent and dissemination agent. In addition, because bondholder approval was needed to issue the new debt in 2021, U.S. Bank stepped in and served as the tabulation agent for the existing investors.  

Key to a successful project finance deal is finding a partner with the expertise, resources and systems to streamline the process, such as tracking necessary compliance requirements and providing online reporting for the client. In addition, these complex deals often require a higher level of client relationship management.  

“There is a lot more client interaction than a typical municipal financing, because there is always something going on, whether it is requisitions being paid or the sponsor needing to post financials or updates that need to be disseminated to the market,” says Gretchen Middents, relationship manager, Global Corporate Trust at U.S. Bank. “So, it is a much more hands-on relationship as compared with other assignments that don’t have the same scope of documents and requirements.”  

In addition, working with a third-party trustee and agent to perform all project finance roles can produce numerous efficiencies, such as streamlining operations, coordinating workstreams from various parties and providing assistance for investors at every stage of the project lifecycle. Finding a partner with extensive experience servicing all debt vehicles can help guide decision-making with strategic insights and proactive solutions.  

“These projects are more of a team effort because of the complexity,” adds Middents, “and being able to rely on others within our organization is key to our success.”

U.S. Bank administers a variety of infrastructure asset types and has the dedicated expertise to assist investors at every stage of the project finance lifecycle. See our extensive suite of services for debt financing  here  or contact Lars Anderson at  [email protected]  or Alejandro Hoyos at  [email protected] .

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--> Clifford Chance

Clifford Chance

A new approach to project finance

Using a range of our specialised innovation capabilities allowed us to be more efficient and deliver a portfolio of nine projects in record time that otherwise would have been dealt with by different counsels..

For this project, we advised the lenders in relation to the due diligence and financing of six wind farms forming part of Windplan Groen and also advised three other Windplan Groen wind farms regarding their due diligence. Such a complex matter gave us the perfect opportunity to leverage several of our innovation capabilities to enhance the matter delivery, generate efficiencies for our client and save valuable lawyer time by allocating the right work at the right level. This led to a positive impact on the commercial outcome and delivery quality.

Windplan Groen is a large Wind Energy project forming part of an overall plan to generate 100% of the Dutch province of Flevoland’s electricity through wind energy and contribute to the country’s goal of generating 16% of all energy in the Netherlands sustainably by 2023. 

CASE STUDY | LEGAL PROJECT MANAGEMENT | CONTINUOUS IMPROVEMENT |  DELIVERY CENTRES  

The challenge

The traditional approach to project finance involves running in parallel a due diligence process and drafting and negotiating finance and project documents. Since this matter involved six separate financings under one umbrella, most of the finance and security documents, such as facility agreements, security documents and due diligence reports, were similar. The question was how to leverage the work across all six projects simultaneously to avoid duplication of effort?

The solution

Our Continuous Improvement specialists worked with our partners during the pitch phase to develop a well-organised approach to deliver the work. The deal team  developed a value-based pricing model based on maximum efficiency. 

A Legal Project Manager (LPM) was assigned to this project to coordinate the multiple workstreams, resources and delivery. They acted as a focal point for our legal team, the client and other transaction parties. Our LPM managed the scope, ensured information flowed effectively across the different groups during the transaction, kept an overview of the status for each project and presented a consolidated view of the big picture. They also provided commercial updates and financial management of the matter across a complex fee structure.  

The LPM then brought in our other innovation capabilities and introduced digital solutions at the appropriate stages of the matter. We engaged our Delivery Centres to draft documentation and assist with signing and closing activities. We used our checklist management solution, Transact, which allowed us to have one secure online platform where documents and Conditions Precedent could be accessed and approved. Despite additional time spent on instructions, the overall set up did result in the deal team spending more time on the actual deal itself than on the administrative items. 

Clifford Chance's integral team of lawyers and innovation professionals worked together to deliver a highly complex transaction in an efficient, timely manner and within budget. This coordination and alignment of the different teams involved allowed the firm to add real value to our client's matter. The most appealing aspect was that we were able and willing to take over the entirety of their projects and run them in parallel. We developed templates for one of the more complex projects and adapted them with minimal changes for the others.

The fee structure of the project presented a mix between fixed fees for specific deliverables and blended rates without a cap for financial closing. This approach allowed us to maximise efficiencies in the project delivery generating an attractive commercial proposal to the clients whilst achieving an above average profitability and recovery.

The result could not have been achieved if legal and innovation professionals had not worked closely together towards the same goal of providing the best service possible to our clients.

case study project finance

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Your most important matters need dedicated project management. Our team of Legal Project Managers (LPMs) work with lawyers and clients to handle the most complicated stages of legal operations, to turn complexity into clarity.

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NYIF: Deals in Project Finance: Case Studies and Analysis

Review multiple case studies and transactions to recognize how to select the best deals for investment.

Deals in Project Finance: Case Studies and Analysis

There is one session available:

Deals in project finance: case studies and analysis, about this course.

In this course, we will review multiple case studies and transactions to recognize how to select the best deal for an investment.

We’ll look at the different players in a deal and understand what the risks are.

This course is part of the New York Institute of Finance’s popular Project Finance and the Public Private Partnership Professional Certificate program.

At a glance

  • Institution: NYIF
  • Subject: Economics & Finance
  • Level: Introductory

Knowledge of corporate finance and basic credit analysis

  • Language: English
  • Video Transcripts: اَلْعَرَبِيَّةُ, Deutsch, English, Español, Français, हिन्दी, Bahasa Indonesia, Português, Kiswahili, తెలుగు, Türkçe, 中文
  • Professional Certificate in Project Finance and Public Private Partnerships
  • Associated skills: Finance, Project Finance

What you'll learn

  • Identify the main players in a deal.
  • Recognize the risks involved in various types of deals
  • Understand how to select a deal for investment
  • Lesson 1: Case A: U.S. Geothermal
  • Lesson 2: Case B: Airport Case New
  • Lesson 3: Case C: Toll Road Case
  • Lesson 4: Case D: AES Jordan Case
  • Lesson 5: Case U: Canada Schools
  • Lesson 6: Case P: Gas-Project Financing
  • Lesson 7: Case W: Ichthys LNG Project
  • Lesson 8: Case V: Guyana Goldfields
  • Lesson 9: Which Deal will you Invest in?
  • Lesson 10: Recap

This course is part of Project Finance and Public Private Partnerships Professional Certificate Program

Interested in this course for your business or team.

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case study project finance

Benjamin C. Esty

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Graphic packaging: project cowboy (a, b, c, & d).

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Project Finance Model Structure

An overview of the key components and outputs of a project finance model

Learn Project Finance

case study project finance

Project finance modeling is an excel based analytical tool used to assess the risk-reward of lending to or investing in a long-term infrastructure project based upon a complex financial structure. All financial evaluations of a project depend upon projections or expected future cash flows generated by activities of a completed project and a financial model is built to analyze this.

A project finance model is built to be:

  • Easily used
  • Flexible but not overly complex
  • Suitable for assisting the client in making better and more informed decisions

Evolution of a Project Finance Model

A project finance model is used throughout the project term and will need to get updated depending on the phase of the project. Below is an illustrative example of the evolution of a project finance model:

case study project finance

Key Components of a Project Finance Model  

Project finance models are built in excel and need to follow standard industry best practices which have the following minimum contents:

  • Derived from technical studies, financial market expectations, and understanding of the project to date
  • Model should be set up to run multiple scenarios using different inputs and assumptions

Calculations

  • Construction, operating and maintenance costs
  • Accounting and Tax
  • Debt financing
  • Distributions to equity
  • Project IRR
  • Contain a summary of project metrics important to management for informed decision making
  • Included financial statements (Income statement, balance sheet, cashflow statement)

case study project finance

The Ultimate Project Finance Modeling Package

Everything you need to build and interpret project finance models for a transaction. Learn project finance modeling, debt sizing mechanics, running upside/downside cases and more.

Project Finance Model Scenario Analysis

After an initial financial model is built, scenario analysis is conducted based on variations to model inputs and assumptions.

  • Scenarios might include a ‘base case’, ‘upside case’, and ‘downside case’
  • Variations might be a fixed amount or % change to inputs
  • Scenarios should be compared side by side

Based on changes in inputs and assumptions, the impact of key outputs are compared side by side. Relevant model outputs will depend on who the model users are:

Most Important Financial Model Outputs

The debt service coverage ratio (dscr).

DSCR is the single most important metric for debt lenders to understand the likelihood that their loan can be repaid.

case study project finance

Debt Service Coverage Ratio (DSCR)

Cash flow available for Debt (CFADS)

Internal Rate of Return (IRR)

The Project IRR is the single most import metric for equity investors to understand the level of returns it will expect from its investment.

IRR = The average annual return earned through the life of an investment

Net Present Value (NPV)

The net present value is an output calculation which takes into account the timing and quantum of cash flows based on the time value of money .

NPV = The difference between the present value of the future cashflows from an investment and the amount of investment

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case study project finance

Finance Case Studies

Featured finance case studies:.

Canary Wharf

Canary Wharf: Financing and Placemaking

Venice

Fondaco dei Tedeschi: A New Luxury Shopping Destination for Venice

Nathan Cummings Foundation

Nathan Cummings Foundation: Mission-Driven Investing

Mall

The Decline of Malls

Expand the sections below to read more about each case study:, nathan cummings foundation, ellie campion, dwayne edwards, brad wayman, anna williams, william goetzmann, and jean rosenthal.

Asset Management, Investor/Finance, Leadership & Teamwork, Social Enterprise, Sourcing/Managing Funds

The Nathan Cummings Foundation Investment Committee and Board of Trustees had studied the decision to go “all in” on a mission-related investment approach. The Board voted 100% to support this new direction and new goals for financial investments, but many questions remained. How could NCF operationalize and integrate this new strategy? What changes would it need to make to support the investment strategies' long-term success? How could NCF measure and track its progress and success with this new strategy?

William Goetzmann, Jean Rosenthal, Jaan Elias, Edoardo Pasinato, Lukas Cejnar, Ellie Campion

Business History, Competitor/Strategy, Customer/Marketing, Innovation & Design, Investor/Finance, Sourcing/Managing Funds, State & Society

The renovation of the Fondaco dei Tedeschi in Venice represented a grand experiment. Should an ancient building in the midst of a world heritage site be transformed into a modern mall for luxury goods? How best to achieve the transformation and make it economically sustainable? Would tourists walk to the mall? And would they buy or just look? What could each stakeholder learn from their experiences with the Fondaco dei Tedeschi?

Gardner Denver

James quinn, adam blumenthal, and jaan elias.

Asset Management, Employee/HR, Investor/Finance, Leadership & Teamwork

As KKR, a private equity firm, prepared to take Gardner-Denver, one of its portfolio companies, public in mid-2017, a discussion arose on the Gardner-Denver board about the implications of granting approximately $110 million in equity to its global employee base as part of its innovative "broad-based employee ownership program." Was the generous equity package that Pete Stavros proposed be allotted to 6,100 employees the wisest move and the right timing for Gardner Denver and its new shareholders?

Home Health Care

Jean rosenthal, jaan elias, adam blumenthal, and jeremy kogler.

Asset Management, Competitor/Strategy, Healthcare, Investor/Finance

Blue Wolf Capital Partners was making major investments in the home health care sector. The private equity fund had purchased two U.S. regional companies in the space. The plan was to merge the two organizations, creating opportunities for shared expertise and synergies in reducing management costs. Two years later, the management team was considering adding a third company. Projected revenues for the combined organization would top $1 billion annually. What was the likelihood that this opportunity would succeed?

Suwanee Lumber Company

Jaan elias, adam blumenthal, james shovlin, and heather e. tookes.

Asset Management, Investor/Finance, Sustainability

In 2016, Blue Wolf, a private equity firm headquartered in New York City, confronted a number of options when it came to its lumber business. They could put their holdings in the Suwanee Lumber Company (SLC), a sawmill they had purchased in 2013, up for sale. Or they could continue to hold onto SLC and run it as a standalone business. Or they could double down on the lumber business by buying an idle mill in Arkansas to run along with SLC.

Alternative Meat Industry: How Should Beyond Meat be Valued?

Nikki springer, leon van wyk, jacob thomas, k. geert rouwenhorst and jaan elias.

Competitor/Strategy, Customer/Marketing, Investor/Finance, Sourcing/Managing Funds, Sustainability

In 2009, when experienced entrepreneur Ethan Brown decided to build a better veggie burger, he set his sights on an exceptional goal – create a plant-based McDonald’s equally beloved by the American appetite. To do this, he knew he needed to transform the idea of plant-based meat alternatives from the sleepy few veggie burger options in the grocer’s freezer case into a fundamentally different product. Would further investments in research and development help give Beyond Meat an edge? Would Americans continue to embrace meat alternatives, or would the initial fanfare subside below investor expectations?

Hertz Global Holdings (A): Uses of Debt and Equity

Jean rosenthal, geert rouwenhorst, jacob thomas, allen xu.

Asset Management, Financial Regulation, Sourcing/Managing Funds

By 2019, Hertz CEO Kathyrn Marinello and CFO Jamere Jackson had managed to streamline the venerable car rental firm's operations. Their next steps were to consider ways to fine-tune Hertz's capital structure. Would it make sense for Marinello and Jackson to lead Hertz to issue more equity to re-balance the structure? One possibility was a stock rights offering, but an established company issuing equity was not generally well-received by investors. How well would the market respond to an attempt by Hertz management to increase shareholder equity?

Twining-Hadley Incorporated

Jaan elias, k geert rouwenhorst, jacob thomas.

Employee/HR, Investor/Finance, Metrics & Data, Sourcing/Managing Funds

Jessica Austin has been asked to compute THI's Weighted Average Cost of Capital, a key measure for making investments and deciding executive compensation. What should she consider in making her calculation?

Shake Shack IPO

Vero bourg-meyer, jaan elias, jake thomas and geert rouwenhorst.

Competitor/Strategy, Innovation & Design, Investor/Finance, Leadership & Teamwork, Sourcing/Managing Funds, Sustainability

Shake Shack's long lines of devoted fans made investors salivate when the company went public in 2015 and shares soared above expectations. Was the enthusiasm justified? Could the company maintain its edge in the long run?

Strategy for Norway's Pension Fund Global

Jean rosenthal, william n. goetzmann, olav sorenson, andrew ang, and jaan elias.

Asset Management, Investor/Finance, Sourcing/Managing Funds

Norway's Pension Fund Global was the largest sovereign wealth fund in the world. With questions in 2014 on policies, ethical investment, and other concerns, what was the appropriate investment strategy for the Fund?

Factor Investing for Retirement

Jean rosenthal, jaan elias and william goetzmann.

Asset Management, Investor/Finance

Should this investor look for a portfolio of factor funds to meet his goals for his 401(k) Retirement Plan?

Bank of Ireland

Jean w. rosenthal, eamonn walsh, matt spiegel, will goetzmann, david bach, damien p. mcloughlin, fernando fernandez, gayle allard, and jaan elias.

Asset Management, Financial Regulation, Investor/Finance, Leadership & Teamwork, Macroeconomics, State & Society

In August 2011, Wilbur Ross, an American investor specializing in distressed and bankrupt companies, purchased 35% of the stock of Bank of Ireland. Even for Ross, investing in an Irish bank seemed risky. Observers wondered if the investment made sense.

Commonfund ESG

Jaan elias, sarah friedman hersh, maggie chau, logan ashcraft, and pamela jao.

Asset Management, Investor/Finance, Metrics & Data, Social Enterprise

ESG (Environmental Social and Governance) investing had become an increasingly hot topic in the financial community. Could Commonfund offer its endowment clients some investment vehicle that would satisfy ESG concerns while producing sufficient returns?

Glory, Glory Man United!

Charles euvhner, jacob thomas, k. geert rouwenhorst, and jaan elias.

Competitor/Strategy, Employee/HR, Investor/Finance, Leadership & Teamwork, Sourcing/Managing Funds

Manchester United might be the greatest English sports dynasty of all time. But valuation poses unique challenges. How much should a team's success on the pitch count toward its net worth?

Walmart de México: Investing in Renewable Energy

Jean rosenthal, k. geert rouwenhorst, isabel studer, jaan elias, and juan carlos rivera.

Investor/Finance, Operations, State & Society, Sustainability

Walmart de México y Centroamérica contracted for power from EVM's wind farm, saving energy costs and improving sustainability. What should the company's next steps be to advance its goals?

Voltaire, Casanova, and 18th-Century Lotteries

Jean rosenthal and william n. goetzmann.

Business History, State & Society

Gambling has been a part of human activity since earliest recorded history, and governments have often attempted to turn that impulse to benefit the state.  The development of lotteries in the 18th century helped to develop the study of probabilities and enabled the financial success of some of the leading figures of that era.

Alexander Hamilton and the Origin of American Finance

Andrea nagy smith, william goetzmann, and jeffrey levick.

Business History, Financial Regulation, Investor/Finance

Alexander Hamilton is said to have invented the future. At a time when the young United States of America was disorganized and bankrupt, Hamilton could see that the nation would become a powerful economy.

Kmart Bankruptcy

Jean rosenthal, heather tookes, henry s. miller, and jaan elias.

Asset Management, Financial Regulation, Investor/Finance

Less than 18 months after Kmart entered Chapter 11, the company emerged and its stocked soared. Why had the chain entered Chapter 11 in the first place and how had the bankruptcy process allowed the company to right itself?

Oil, ETFs, and Speculation

So alex roelof, k. geert rouwenhorst, and jaan elias.

Since the markets' origins, traders sought standardized wares to increase market liquidity. In the 1960s and later, they sought assets uncorrelated to traditional bonds and equities. By late 2004, commodity-based exchange-traded securities emerged.

Newhall Ranch Land Parcel

Acquired by a partnership of two closely intertwined homebuilders, Newhall Ranch was the last major tract of undeveloped land in Los Angeles County in 2003.

Brandeis and the Rose Museum

Arts Management, Asset Management, Investor/Finance, Social Enterprise, Sourcing/Managing Funds

The question of the role museums should play in university life became urgent for Brandeis in early 2009. Standard portfolios of investments had just taken a beating. Given that environment, should Brandeis sell art in order to save its other programs?

Taking EOP Private

Allison mitkowski, william goetzmann, and jaan elias.

Asset Management, Financial Regulation, Investor/Finance, Leadership & Teamwork

With 594 properties nationwide, EOP was the nation’s largest office landlord.  Despite EOP's dominance of the REIT market, analysts had historically undervalued EOP. However, Blackstone saw something in EOP that the analysts didn’t, and in November, Blackstone offered to buy EOP for $48.50 per share. What did Blackstone and Vornado see that the market didn’t?

Subprime Lending Crisis

Jaan elias and william n. goetzmann.

Asset Management, Financial Regulation, Investor/Finance, State & Society

To understand the collapse of the subprime mortgage market, we look at a failing Mortgage Backed Security (MBS) and then drill down to look at a single loan that has gone bad.

William N. Goetzmann, Jean Rosenthal, and Jaan Elias

Asset Management, Business History, Customer/Marketing, Entrepreneurship, Innovation & Design, Investor/Finance, Sourcing/Managing Funds, State & Society

The financial engineering of London's Canary Wharf was as impressive as the structural engineering. However, Brexit and the rise of fintech represented new challenges. Would financial firms leave the U.K.? Would fintech firms seek new kinds of space? How should the Canary Wharf Group respond?

The Future of Malls: Was Decline Inevitable?

Jean rosenthal, anna williams, brandon colon, robert park, william goetzmann, jessica helfand  .

Business History, Customer/Marketing, Innovation & Design, Investor/Finance

Shopping malls became the "Main Street" of US suburbs beginning in the mid-20th century. But will they persist into the 21st?

Hirtle Callaghan & Co

James quinn, jaan elias, and adam blumenthal.

Asset Management, Investor/Finance, Leadership & Teamwork

In August 2019, Stephen Vaccaro, Yale MBA ‘03, became the director of private equity at Hirtle, Callaghan & Co., LLC (HC), a leading investment management firm associated with pioneering the outsourced chief investment office (OCIO) model for college endowments, foundations, and wealthy families. Vaccaro was tasked with spearheading efforts to grow HC’s private equity (PE) market value from $1 billion to a new target of roughly $3 billion in order to contribute to the effort of generating higher long-term returns for clients. Would investment committees overseeing endowments typically in the 10s or 100s of millions embrace this shift, and, more pointedly, was this the best move for client portfolios?

The Federal Reserve Response to 9-11

Jean rosenthal, william b. english, jaan elias.

Financial Regulation, Investor/Finance, Leadership & Teamwork, State & Society

The attacks on New York City and the Pentagon in Washington, DC, on September 11, 2001, shocked the nation and the world. The attacks crippled the nerve center of the U.S. financial system. Information flow among banks, traders in multiple markets, and regulators was interrupted. Under Roger Ferguson's leadership, the Federal Reserve made a series of decisions designed to provide confidence and increase liquidity in a severely damaged financial system. In hindsight, were these the best approaches? Were there other options that could have taken place?

Suwanee Lumber Company (B)

In early 2018, Blue Wolf Capital Management received an offer to sell both its mill in Arkansas (Caddo) and its mill in Florida (Suwanee) to Conifex, an upstart Canadian lumber company. Blue Wolf hadn’t planned to put both mills up for sale yet, but was the deal too good to pass up? Blue Wolf had invested nearly $36.5 million into rehabilitating the Suwanee and Caddo mills. However, neither was fully operational yet. Did the offer price fairly value the prospects of the mills? How should Blue Wolf consider the Conifex stock? Should Blue Wolf conduct a more extensive sales process rather than settle for this somewhat unexpected offer?

Occidental Petroleum's Acquisition of Anadarko

Jaan elias, piyush kabra, jacob thomas, k. geert rouwenhorst.

Asset Management, Competitor/Strategy, Investor/Finance, Sourcing/Managing Funds

In May of 2019, Vicki Hollub, the CEO of Occidental Petroleum (Oxy), pulled off a blockbuster. Bidding against Chevron, one of the world's largest oil firms, she had managed to buy Anadarko, another oil company that was roughly the size of Oxy. Hollub believed that the combination of the two firms brought the possibility for billions of dollars in synergies, more than offsetting the cost of the acquisition. Had Hollub hurt shareholder value with Oxy's ambitious deal, or had she bolstered a mid-size oil firm and made it a major player in the petroleum industry? Why didn't investors see the tremendous synergies in which Hollub fervently believed?

Hertz Global Holdings (B): Uses of Debt and Equity 2020

In 2019, Hertz held a successful rights offering and restructured some of its debt. CEO Kathyrn Marinello and CFO Jamere Jackson were moving the company toward what seemed to be sustainable profitability, having implemented major structural and financial reforms. Analysts predicted a rosy future. Travel, particularly corporate travel, was increasing as the economy grew. With all the creativity that the company had shown in its financial arrangements, did it have any options remaining, even while under the court-led reorganization?

Prodigy Finance

Vero bourg-meyer, javier gimeno, jaan elias, florian ederer.

Competitor/Strategy, Investor/Finance, Social Enterprise, State & Society, Sustainability

Having pioneered a successful financing model for student loans, Prodigy also was considering other financial services that could make use of the company’s risk model. What new products could Prodigy offer to support its student borrowers? What strategy should guide the company’s new product development? Or should the company stick to the educational loans it pioneered and knew best?

tronc: Valuing the Future of Newspapers

Jean rosenthal, heather e. tookes, and jaan elias.

Business History, Competitor/Strategy, Investor/Finance, Leadership & Teamwork

Gannet offered Tribune Publishing an all-cash buyout offer. Tribune then made a strategic pivot: new stock listing, new name "tronc," and a goal of posting 1,000 videos/day. Should the Tribune board take the buyout opportunity? What was the right price?

Role of Hedge Funds in Institutional Portfolios: Florida Retirement System

Jaan elias, william goetzmann and lloyd baskin.

Asset Management, Financial Regulation, Investor/Finance, Metrics & Data, State & Society

The Florida Retirement System, one of the country’s largest state pensions, had been slow to embrace hedge funds, but by 2015, they had 7% of their assets in the category. How should they manage their program?

Social Security 1935

Jean rosenthal, william n. goetzmann, and jaan elias.

Business History, Financial Regulation, Innovation & Design, Investor/Finance, State & Society

Frances Perkins, Franklin Roosevelt's Secretary of Labor, shaped the Social Security Act of 1935, changing America’s pension landscape. What might she have done differently?

Ant Financial: Flourishing Farmer Loans at MYbank

Jingyue xu, jean rosenthal, k. sudhir, hua song, xia zhang, yuanfang song, xiaoxi liu, and jaan elias.

Competitor/Strategy, Customer/Marketing, Entrepreneurship, Innovation & Design, Investor/Finance, Leadership & Teamwork, Operations, State & Society

In 2015 Ant Financial's MYbank (an offshoot of Jack Ma’s Alibaba company) created the Flourishing Farmer Loan program, an all-internet banking service for China's rural areas. Could MYbank use financial technology to create a program with competitive costs and risk management?

Low-Carbon Investing: Commonfund & GPSU

Jaan elias, william goetzmann, and k. geert rouwenhorst.

Asset Management, Ethics & Religion, Investor/Finance, Social Enterprise, State & Society, Sustainability

In August of 2014, the movement to divest fossil fuel investments from endowment portfolios was sweeping campuses across the United States, including Gifford Pinchot State University (GPSU). How should GPSU and its investment partner Commonfund react?

360 State Street: Real Options

Andrea nagy smith and mathew spiegel.

Asset Management, Investor/Finance, Metrics & Data, Sourcing/Managing Funds

360 State Street proved successful, but what could Bruce Becker construct on the 6,000-square-foot vacant lot at the southwest corner of the project? Under what set of circumstances and at what time would it be most advantageous to proceed? Or should he build anything at all?

Centerbridge

Jean rosenthal and olav sorensen.

When Jeffrey Aronson and Mark Gallogly founded Centerbridge, they hoped to grow the firm, but not to a point that it would lose its culture. Having added an office in London, could the firm add more locations and maintain its collegial character?

George Hudson and the 1840s Railway Mania

Andrea nagy smith, james chanos, and james spellman.

Business History, Financial Regulation, Investor/Finance, Metrics & Data

Railways were one of the original disruptive technologies: they transformed England from an island of slow, agricultural villages into a fast, urban, industrialized nation.  George Hudson was the central figure in the mania for railroad shares in England. After the share value crashed, some analysts blamed Hudson, others pointed to irrational investors and still others maintained the crash was due to macroeconomic factors.

Demosthenes and Athenian Finance

Andrea nagy smith and william goetzmann.

Business History, Financial Regulation, Law & Contracts

Demosthenes' Oration 35, "Against Lacritus," contains the only surviving maritime loan contract from the fourth century B.C., proving that the ancient Greeks had devised a commercial code to link the economic lives of people from all over the Greek world.   Athenians and non-Athenians alike came to the port of Piraeus to trade freely.

South Sea Bubble

Frank newman and william goetzmann.

Business History, Financial Regulation

The story of the South Sea Company and its seemingly absurd stock price levels always enters into conversations about modern valuation bubbles.  Because of its modern application, discerning what was at the root of the world's first stock market crash merits considerable attention. What about the South Sea Company and the political, economic and social context in which it operated led to its stunning collapse?

Jean W. Rosenthal, Jaan Elias, William N. Goetzmann, Stanley Garstka, and Jacob Thomas

Asset Management, Healthcare, Investor/Finance, Sourcing/Managing Funds, State & Society

A centerpiece of the 2007 contract negotiations between the UAW and GM - and later with Chrysler and Ford - was establishing a Voluntary Employee Beneficiary Association (VEBA) to provide for retiree healthcare costs. The implications were substantial.

Northern Pulp: A Private Equity Firm Resurrects a Troubled Paper Company

Heather tookes, peter schott, francesco bova, jaan elias and andrea nagy smith.

Investor/Finance, Macroeconomics, State & Society, Sustainability

In 2008, the lumber industry was in a severe recession, yet Blue Wolf Capital Management was considering investment in a paper mill in Nova Scotia. How should they proceed?

Lahey Clinic: North Shore Expansion

Jaan elias, andrea r. nagy, jessica p. strauss, and william n. goetzmann.

Asset Management, Financial Regulation, Healthcare, Investor/Finance

In early 2007 the Lahey Clinic in Massachusetts believed that expansion of its North Shore facility was not only a smart strategy but also a business necessity.  The two years of turmoil in the Massachusetts health care market prompted observers to question Lahey's 2007 decisions. Did the expansion strategy still make sense?

Carry Trade ETF

K. geert rouwenhorst, jean w. rosenthal, and jaan elias.

Innovation & Design, Investor/Finance, Macroeconomics, Sourcing/Managing Funds

In 2006 Deutsche Bank (DB) brought a new product to market – an exchange traded fund (ETF) based on the carry trade, a strategy of buying and selling currency futures. The offering received the William F. Sharpe Indexing Achievement Award for “Most Innovative Index Fund or ETF” at the 2006 Sharpe Awards. These awards are presented annually by IndexUniverse.com and Information Management Network for innovative advances in the indexing industry. The carry trade ETF shared the award with another DB/PowerShares offering, a Commodity Index Tracking Fund. Jim Wiandt, publisher of IndexUniverse.com, said, "These innovators are shaping the course of the index industry, creating new tools and providing new insights for the benefit of all investors." What was it that made this financial innovation successful?

William Goetzmann and Jaan Elias

Asset Management, Business History

Hawara is the site of the massive pyramid of Amenemhat III, a XII Dynasty [Middle Kingdom, 1204 – 1604 B.C.E.] pharaoh.  The Hawara Labyrinth and Pyramid Complex present a wealth of information about the Middle Kingdom.  Among its treasures are papyri covering property rights and transfers of ownership.

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case study project finance

  • 23 Jan 2024

More Than Memes: NFTs Could Be the Next Gen Deed for a Digital World

Non-fungible tokens might seem like a fad approach to selling memes, but the concept could help companies open new markets and build communities. Scott Duke Kominers and Steve Kaczynski go beyond the NFT hype in their book, The Everything Token.

case study project finance

  • 12 Sep 2023
  • Research & Ideas

How Can Financial Advisors Thrive in Shifting Markets? Diversify, Diversify, Diversify

Financial planners must find new ways to market to tech-savvy millennials and gen Z investors or risk irrelevancy. Research by Marco Di Maggio probes the generational challenges that advisory firms face as baby boomers retire. What will it take to compete in a fintech and crypto world?

case study project finance

  • 17 Aug 2023

‘Not a Bunch of Weirdos’: Why Mainstream Investors Buy Crypto

Bitcoin might seem like the preferred tender of conspiracy theorists and criminals, but everyday investors are increasingly embracing crypto. A study of 59 million consumers by Marco Di Maggio and colleagues paints a shockingly ordinary picture of today's cryptocurrency buyer. What do they stand to gain?

case study project finance

  • 17 Jul 2023

Money Isn’t Everything: The Dos and Don’ts of Motivating Employees

Dangling bonuses to checked-out employees might only be a Band-Aid solution. Brian Hall shares four research-based incentive strategies—and three perils to avoid—for leaders trying to engage the post-pandemic workforce.

case study project finance

  • 20 Jun 2023
  • Cold Call Podcast

Elon Musk’s Twitter Takeover: Lessons in Strategic Change

In late October 2022, Elon Musk officially took Twitter private and became the company’s majority shareholder, finally ending a months-long acquisition saga. He appointed himself CEO and brought in his own team to clean house. Musk needed to take decisive steps to succeed against the major opposition to his leadership from both inside and outside the company. Twitter employees circulated an open letter protesting expected layoffs, advertising agencies advised their clients to pause spending on Twitter, and EU officials considered a broader Twitter ban. What short-term actions should Musk take to stabilize the situation, and how should he approach long-term strategy to turn around Twitter? Harvard Business School assistant professor Andy Wu and co-author Goran Calic, associate professor at McMaster University’s DeGroote School of Business, discuss Twitter as a microcosm for the future of media and information in their case, “Twitter Turnaround and Elon Musk.”

case study project finance

  • 06 Jun 2023

The Opioid Crisis, CEO Pay, and Shareholder Activism

In 2020, AmerisourceBergen Corporation, a Fortune 50 company in the drug distribution industry, agreed to settle thousands of lawsuits filed nationwide against the company for its opioid distribution practices, which critics alleged had contributed to the opioid crisis in the US. The $6.6 billion global settlement caused a net loss larger than the cumulative net income earned during the tenure of the company’s CEO, which began in 2011. In addition, AmerisourceBergen’s legal and financial troubles were accompanied by shareholder demands aimed at driving corporate governance changes in companies in the opioid supply chain. Determined to hold the company’s leadership accountable, the shareholders launched a campaign in early 2021 to reject the pay packages of executives. Should the board reduce the executives’ pay, as of means of improving accountability? Or does punishing the AmerisourceBergen executives for paying the settlement ignore the larger issue of a business’s responsibility to society? Harvard Business School professor Suraj Srinivasan discusses executive compensation and shareholder activism in the context of the US opioid crisis in his case, “The Opioid Settlement and Controversy Over CEO Pay at AmerisourceBergen.”

case study project finance

  • 16 May 2023
  • In Practice

After Silicon Valley Bank's Flameout, What's Next for Entrepreneurs?

Silicon Valley Bank's failure in the face of rising interest rates shook founders and funders across the country. Julia Austin, Jeffrey Bussgang, and Rembrand Koning share key insights for rattled entrepreneurs trying to make sense of the financing landscape.

case study project finance

  • 27 Apr 2023

Equity Bank CEO James Mwangi: Transforming Lives with Access to Credit

James Mwangi, CEO of Equity Bank, has transformed lives and livelihoods throughout East and Central Africa by giving impoverished people access to banking accounts and micro loans. He’s been so successful that in 2020 Forbes coined the term “the Mwangi Model.” But can we really have both purpose and profit in a firm? Harvard Business School professor Caroline Elkins, who has spent decades studying Africa, explores how this model has become one that business leaders are seeking to replicate throughout the world in her case, “A Marshall Plan for Africa': James Mwangi and Equity Group Holdings.” As part of a new first-year MBA course at Harvard Business School, this case examines the central question: what is the social purpose of the firm?

case study project finance

  • 25 Apr 2023

Using Design Thinking to Invent a Low-Cost Prosthesis for Land Mine Victims

Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) is an Indian nonprofit famous for creating low-cost prosthetics, like the Jaipur Foot and the Stanford-Jaipur Knee. Known for its patient-centric culture and its focus on innovation, BMVSS has assisted more than one million people, including many land mine survivors. How can founder D.R. Mehta devise a strategy that will ensure the financial sustainability of BMVSS while sustaining its human impact well into the future? Harvard Business School Dean Srikant Datar discusses the importance of design thinking in ensuring a culture of innovation in his case, “BMVSS: Changing Lives, One Jaipur Limb at a Time.”

case study project finance

  • 18 Apr 2023

What Happens When Banks Ditch Coal: The Impact Is 'More Than Anyone Thought'

Bank divestment policies that target coal reduced carbon dioxide emissions, says research by Boris Vallée and Daniel Green. Could the finance industry do even more to confront climate change?

case study project finance

The Best Person to Lead Your Company Doesn't Work There—Yet

Recruiting new executive talent to revive portfolio companies has helped private equity funds outperform major stock indexes, says research by Paul Gompers. Why don't more public companies go beyond their senior executives when looking for top leaders?

case study project finance

  • 11 Apr 2023

A Rose by Any Other Name: Supply Chains and Carbon Emissions in the Flower Industry

Headquartered in Kitengela, Kenya, Sian Flowers exports roses to Europe. Because cut flowers have a limited shelf life and consumers want them to retain their appearance for as long as possible, Sian and its distributors used international air cargo to transport them to Amsterdam, where they were sold at auction and trucked to markets across Europe. But when the Covid-19 pandemic caused huge increases in shipping costs, Sian launched experiments to ship roses by ocean using refrigerated containers. The company reduced its costs and cut its carbon emissions, but is a flower that travels halfway around the world truly a “low-carbon rose”? Harvard Business School professors Willy Shih and Mike Toffel debate these questions and more in their case, “Sian Flowers: Fresher by Sea?”

case study project finance

Is Amazon a Retailer, a Tech Firm, or a Media Company? How AI Can Help Investors Decide

More companies are bringing seemingly unrelated businesses together in new ways, challenging traditional stock categories. MarcAntonio Awada and Suraj Srinivasan discuss how applying machine learning to regulatory data could reveal new opportunities for investors.

case study project finance

  • 07 Apr 2023

When Celebrity ‘Crypto-Influencers’ Rake in Cash, Investors Lose Big

Kim Kardashian, Lindsay Lohan, and other entertainers have been accused of promoting crypto products on social media without disclosing conflicts. Research by Joseph Pacelli shows what can happen to eager investors who follow them.

case study project finance

  • 31 Mar 2023

Can a ‘Basic Bundle’ of Health Insurance Cure Coverage Gaps and Spur Innovation?

One in 10 people in America lack health insurance, resulting in $40 billion of care that goes unpaid each year. Amitabh Chandra and colleagues say ensuring basic coverage for all residents, as other wealthy nations do, could address the most acute needs and unlock efficiency.

case study project finance

  • 23 Mar 2023

As Climate Fears Mount, More Investors Turn to 'ESG' Funds Despite Few Rules

Regulations and ratings remain murky, but that's not deterring climate-conscious investors from paying more for funds with an ESG label. Research by Mark Egan and Malcolm Baker sizes up the premium these funds command. Is it time for more standards in impact investing?

case study project finance

  • 14 Mar 2023

What Does the Failure of Silicon Valley Bank Say About the State of Finance?

Silicon Valley Bank wasn't ready for the Fed's interest rate hikes, but that's only part of the story. Victoria Ivashina and Erik Stafford probe the complex factors that led to the second-biggest bank failure ever.

case study project finance

  • 13 Mar 2023

What Would It Take to Unlock Microfinance's Full Potential?

Microfinance has been seen as a vehicle for economic mobility in developing countries, but the results have been mixed. Research by Natalia Rigol and Ben Roth probes how different lending approaches might serve entrepreneurs better.

case study project finance

  • 16 Feb 2023

ESG Activists Met the Moment at ExxonMobil, But Did They Succeed?

Engine No. 1, a small hedge fund on a mission to confront climate change, managed to do the impossible: Get dissident members on ExxonMobil's board. But lasting social impact has proved more elusive. Case studies by Mark Kramer, Shawn Cole, and Vikram Gandhi look at the complexities of shareholder activism.

case study project finance

  • 07 Feb 2023

Supervisor of Sandwiches? More Companies Inflate Titles to Avoid Extra Pay

What does an assistant manager of bingo actually manage? Increasingly, companies are falsely classifying hourly workers as managers to avoid paying an estimated $4 billion a year in overtime, says research by Lauren Cohen.

case study project finance

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Project Finance Case Study

  • Debt Syndication Process
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Project Finance case study

Robert owns an automotive manufacturing company known as ‘RD Manufacturing Private Limited’. He started the company 10 years ago. The company is doing very well with a turnover of 75 crores this year. The company is into manufacturing automobile parts and other essential components. Some of the best automotive brands in India are clients of ‘RD manufacturing’.

Till now, Robert’s company had an office in Mumbai and a manufacturing plant in Pune. Now, due to the rapid growth of the business, Robert’s clients have spoken to him about opening another plant in Jamshedpur. Therefore, now Robert is looking forward to expanding his business by opening another manufacturing unit at Jamshedpur. But he is worried about the funds for his new project. Taking the funds out of working capital will create a challenge for the existing customer and will hamper the working capital cycle.

Strategic Financial Decision

As a good businessman, this is not a good course of action. So he started to explore the options of raising the funds from the debt market, without disturbing the existing fund flow. He has good credit and can repay the loan from the revenue he gets from his project finance case study after completion. He foresees very good profit and rapid growth if he expands his company now. Thus, Robert’s rating as a business person and his extensive experience in the manufacturing industry is well known.

Read more about effective management of the working capital cycle here.

Financial Snapshots

Analysis from inputs.

Robert is especially looking for Non-recourse funding as a feature of the loan. Non-recourse funding means that he and the other shareholders of the borrower will have no personal liability in case of monetary default. Any recourse the lender may have will be limited primarily or entirely to the project assets if the project company defaults on the debt.

He didn’t know which loan to apply for or which financial institution to contact. While discussing his problem with a business friend, the name Terkar Capital came across. Thus, Robert approached Terkar Capital and we set up a meeting with him to understand the process of project financing.

Financial Analysis

Our executives met Robert and understood his requirements for the funding and his business. So, after a detailed discussion, we suggested that he should take Project Finance . This type of funding would be a perfect fit for him considering the viability of his project, payback period, and his personal experience and profile. 

The financial institution has to show that the project finance case study is viable to receive the loan. Therefore, we helped Robert prepare a report explaining his project and the financial position of the company. And that he is capable of paying off the loan from the revenue, that project generates. He also would not require any separate mortgage for the funding as the project itself will act as a mortgage for the loan. In the case of project funding , the funds can be generated as per the requirement, be it periodically or all at the same time. 

Robert got his project funding sanctioned in just 20 working days after approaching us. Robert’s new manufacturing plant has been doing very well now and he has almost repaid the entire loan amount. So, now, he is one of our loyal customers at Terkar Capital.

Project Financing at Terkar Capital

Terkar Capital understands the needs of entrepreneurs like Robert, who are seeking project funding services. With a personalized and human approach, our executives took the time to listen to Robert’s requirements and thoroughly assessed his business.

Recognizing the potential for growth and Robert’s credibility, we recommended Project Finance as the ideal solution. This allowed Robert to secure the necessary funds without disrupting his existing operations. Today, Robert’s manufacturing plant thrives, and he stands as a testament to our commitment to our loyal customers at Terkar Capital.

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Edward Bodmer – Project and Corporate Finance

Resolving BS in Finance

Case Studies

Part 1 - Case Studies.pdf

Part 1 – Case Studies.pdf

Case Studies – General Introduction

Bankrupcy cartoon.JPG

Discussion of the case studies below takes a very different philosophy. The cases concentrate on analysis of mistakes that were made and what are some of the common themes of mistakes made in the financial analysis of the various investments. Cases are often relatively old so that you can see what went wrong and hopefully why things fell appart. Some of the cases such as Iridium, Petrozuata, Quezon and Dahbol use information from the HBS cases (the case write-ups are not included on the site because of copyright rules). However, financial models associated with some of the cases are included.

Introduction to Case Studies – Housing Values, Loans and Structured Finance in U.S. Housing Crisis

Modelling Cartoon.JPG

Chapter 2.pdf

CDO Exercise 1.xlsm

CDO Exercise 1.xlsm

CDO Exercise 2.xlsm

CDO Exercise 2.xlsm

CDO Exercise 3 - Break Even.xlsm

CDO Exercise 3 – Break Even.xlsm

Housing Data.xlsm

Housing Data.xlsm

Petrozuata – Oil Project Finance

Awards.jpg

Here is my write-up of the case.

Petrozuata Case.pdf

Petrozuata Case.pdf

Petrozuata Articles and Resources Other than HBS Case

petrozuarta general description.pdf

petrozuarta general description.pdf

Petrozuata - Finished Scenario.xlsm

Petrozuata – Finished Scenario.xlsm

Petrozuata - Finished Sensitivity.xlsm

Petrozuata – Finished Sensitivity.xlsm

Fitch Write-up.pdf

Fitch Write-up.pdf

Moodys PDV summary.pdf

Moodys PDV summary.pdf

ConocoPhillips Presentation.pdf

ConocoPhillips Presentation.pdf

Structured Finance with Diagram.pdf

Structured Finance with Diagram.pdf

petrozuata.ppt

petrozuata.ppt

Dabhol – IPP Analysis and Project Finance

Dibert2.JPG

Dahbol is an interesting case because it was first launched as a breakthrough in electricity investment for India and arguably was an important cause of the downfall of Enron. The central issue in the case is whether risk analysis and valuation should have involved contract evaluation and insurance on PPA contracts or whether the ultimate affordability of the produced electricity to ultimate consumers should have been the focus of the analysis. To evaluate the latter issue, costs must be benchmarked and evaluated over time. Much has been written about the political and contractual aspects of the case and some of these articles are replicated below. The focus of the video discussion is how to quantify in a simple manner the question of whether the project could really work.

Dabhol Resources other than three HBS Cases that Support Enron Position

Asia Times Comprehensive Article.pdf

Asia Times Comprehensive Article.pdf

Dabhol Chronology.pdf

Dabhol Chronology.pdf

Dabhol_InfrastructureJournal12_2005.pdf

Dabhol_InfrastructureJournal12_2005.pdf

Dabhol Discussion.pdf

Dabhol Discussion.pdf

Dahbol What Happened.pdf

Dahbol What Happened.pdf

Recent Update on Dabhol Power Plant.pdf

Recent Update on Dabhol Power Plant.pdf

First Solar Case Study (Solar Power and Renewables)

Dilbert1.JPG

First Solar is a good example of management believing that returns can be maintained in a business with not much competitive advantage. The retrun on investment that was extremely high and supported by subsidy systems early in the solar industry could not be maintained. The idea that the company could make the same kind of returns in other parts of the business was also flawed. The First Solar case is a good way to review the economics of solar power in general and illustrate the importance of financing cost.

Chapter 4 - First Solar.pdf

Chapter 4 – First Solar.pdf

Kitty Hawk Merger Case Study

Kitty Hawk is a good example of evaluating a merger case. The company was a Wall Street star. It bought a company that was bigger than itself and had the aggrogant idea that it could fix problems for a company that had different types of planes. The manner in which the analysts did not think about potentital volatility in prices and revenues is a good example of how mistakes can be made.

kitty hawk analyst reports.pdf

kitty hawk analyst reports.pdf

Kitty Hawk and Kalitta Merger Model 1.xlsm

Kitty Hawk and Kalitta Merger Model 1.xlsm

Kitty Hawk Merger Model.xlsm

Kitty Hawk Merger Model.xlsm

Kittyhawk.ppt

Kittyhawk.ppt

Exchange Offer in Merger.txt

Exchange Offer in Merger.txt

Irdium Case Study

Following the crowd and not understanding the difference between forecasts founded on real historical data versus vague business plans, unlike other case studies that discuss management options and strategies, the iridum case is an obvious disaster. in the case, various investment banks followed one another which with hindsight were absurd. the case demonstrates that when making forecasts, the importance of objective data rather than opinions of well dressed investment bankers., one of the basic principles of project finance is that sponsors should be reputable. even though project finance loans are non-recourse meaning that they cannot be paid from other projects in the portfolio of a company, the reputation of owners is very important. in general, owners get paid after or at a similar rate as lenders meaning that if owners get paid, then lenders will also get paid. making loans on reputation has always been fundemental to banking. if owners believe there will be enough value in a project to generate a rate of return, then bankers will be paid. the problem with this philosophy is at least twofold. first, it means you are trusting potentially inept and/or corrupt management as to the value of the project. second, if the project has high expected cash flows, but also a high volatility, the debt to capital ratio may not have enough buffer to withstand declines in value. this was the implicit basis of the iridum project. in evaluation of the sources and uses for the project, the debt represented 50% of the project cost and the sponsor, motorola was considered one of the best companies in the telecommunication industry., the project had some problems that were know to all of the investors. the phones were large, bulky and expensive to produce; the phones not work in buildings; if business travelers use the phone they would have to carry an additional business. most importantly, the capacity of the satellites was limited. quote from case..

Iridium Model

Iridum Case Study.xls

Iridum Case Study.xls

1997 Prospectus.txt

1997 Prospectus.txt

PROSPECTUS.txt

PROSPECTUS.txt

1999 10Q for Iridium Telecom.txt

1999 10Q for Iridium Telecom.txt

Slides of Selected Case Studies

Valuation and Modelling Mistakes.ppt

Valuation and Modelling Mistakes.ppt

This case is a good example of making evey mistake in the book for Project Finance. Mistakes included horrible structuring of EPC contracts, crazy traffic studies, unconventional technology, no government support and poor analysis of contracts. The first file contains the Eurotunnel Offering Memo which is hard to find on the internet.

Eurotunnel Offering Memo.pdf

Eurotunnel Offering Memo.pdf

Eurotunnel Model.xls

Eurotunnel Model.xls

Case Writeup Lender Passivity.pdf

Case Writeup Lender Passivity.pdf

Eurotunnel Article.pdf

Eurotunnel Article.pdf

Eurotunnel Financial Results Case.pdf

Eurotunnel Financial Results Case.pdf

Video on Eurotunnel Finances

A2 Tollway — Modelling and Analysis of Public Private Partnership (Contrast to Eurotunnel)

A2 Tollway Finished.zip

A2 Tollway Finished.zip

Sutton Bridge — Project Finance and Merchant Electricity

Enron Stock Price.xlsx

Enron Stock Price.xlsx

Sutton Bridge Financial Data.xlsm

Sutton Bridge Financial Data.xlsm

Sutton Bridge Merchant Complete.xlsm

Sutton Bridge Merchant Complete.xlsm

Sutton Bridge Merchant Exercise.xlsm

Sutton Bridge Merchant Exercise.xlsm

Sutton Bridge Annual Reports.zip

Sutton Bridge Annual Reports.zip

Moodys 2001 Report.pdf

Moodys 2001 Report.pdf

sutton bridge case1.ppt

sutton bridge case1.ppt

UK Plants.xlw

UK Plants.xlw

original bond.doc

original bond.doc

sutton bridge article.doc

sutton bridge article.doc

Southport/Freeport — Project Finance, Cost of Capital and Options

Southport Completed.xls

Southport Completed.xls

southport Project Model Exercise.xls

southport Project Model Exercise.xls

southport_basic.xls

southport_basic.xls

Case Study of Copper Prices.ppt

Case Study of Copper Prices.ppt

Freport Project Finance Model.pdf

Freport Project Finance Model.pdf

alternative annual report.pdf

alternative annual report.pdf

human_rights_hist.pdf

human_rights_hist.pdf

JFK, Indonesia, CIA and Freeport Sulphur.txt

JFK, Indonesia, CIA and Freeport Sulphur.txt

Constellation Energy – Valuation

Constellation.xls

Constellation.xls

Constellation.zip

Constellation.zip

Quezon Coal Plant Case (Philippines)

Quezon Coal Plant Case Study.pptx

Quezon Coal Plant Case Study.pptx

Orascom Telecom  — Corporate Finance

Merchant Electricity Plant — Cost of Capital

Renewable Case  Studies Data

This case study, described in Chapter 1 of the book, includes analysis of valuation using multiples, earnings forecasts, financial statement analysis and acceptance of confusing statemens made by management.

IMAGES

  1. Finance Case Study Sample

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  2. How to Create a Case Study + 14 Case Study Templates

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  3. 37+ Case Study Templates

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  4. 37+ Case Study Templates

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  5. (Case study)analysis of_financial_statements_at_a_furniture_manufactu…

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VIDEO

  1. Banking case study / Project Explanation

  2. Case Study Project

  3. 1(6).PROJECT FINANCE

  4. Psychology Case Study Project File Class 12 CBSE

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COMMENTS

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    July 06, 2022 Project finance is complex, which is a why a corporate trust partner with comprehensive capabilities is a critical piece of the puzzle. Improving the country's aging infrastructure is a top priority, and the $1 trillion Congress recently committed to infrastructure spending will likely kickstart a host of new building projects.

  2. PDF Project Finance: Practical Case

    1996), Project Finance: Practical Case Studies (Euromoney Books, 1996), Lender's Guide to the Knowledge-Based Economy with Richard D. Crawford (Amacom Books, 1996), Foreign Exchange Risk Management: A Survey of Corporate Practices with Frederick C. Militello (Financial Executives Research Foundation, 1995) and The Empowered

  3. Project Finance Course

    Project Finance Project Finance: Free Online Course Learn the basics of a project finance transaction, key debt, and cash flow metrics, as well as return calculations and common scenarios used to support negotiations using a real case study. Includes FREE Excel template. Last Updated September 6, 2022 Get Certified in Project Finance Modeling

  4. Project Finance: Articles, Research, & Case Studies

    Infrastructure and Finance: Evidence from India's GQ Highway Network. by Abhiman Das, Ejaz Ghani, Arti Grover, William R. Kerr, and Ramana Nanda. In India, the Golden Quadrilateral highway network connects four major cities. This study of the relationship between the infrastructure project and development of the local financial sector finds ...

  5. Modern Project Finance: A Casebook

    An Overview of Project Finance. 3. Why Study Large Projects? MODULE 1.

  6. PDF Project Finance: Practical Case Studies

    1996), Project Finance: Practical Case Studies (Euromoney Books, 1996), Lender's Guide to the Knowledge-Based Economy with Richard D. Crawford (Amacom Books, 1996), Foreign Exchange Risk Management: A Survey of Corporate Practices with Frederick C. Militello (Financial Executives Research Foundation, 1995) and The Empowered

  7. PDF Project Finance Case Studies and Underlying Principles

    SECTION 1: OVERVIEW OF PROJECT FINANCE Theory of Project Finance Between Project Finance and Differences and Corporate Finance Project Finance Definition and Definition of Selected Terms Phases and Changing Risks over time in Project Financing Project Finance Analysis Compared to Corporate Finance and Importance of Project Finance

  8. Project Finance in Theory and Practice

    Select Case Study 4 - Watercraft Capital S.A.: Refinancing Project Finance Transactions1(*)(*)Disclaimer:This case was prepared by Professor Stefano Gatti (Bocconi University) and Andrea Florio (Bocconi University) as a basis for class discussion rather than to illustrate some of the typical issues of bond refinancing of a project finance ...

  9. PDF Project Finance in Practice

    Project Finance in Practice Case Studies Carmel de Nahlik and Chris Jackson E U R O M O N E Y B O O K S. Published by Euromoney Institutional Investor PLC Nestor House, Playhouse Yard London EC4V 5EX United Kingdom Tel: +44 (0)20 7779 8999 or USA 11 800 437 9997 Fax: +44 (0)20 7779 8300 www.euromoneybooks.com

  10. A new approach to project finance

    The challenge. The traditional approach to project finance involves running in parallel a due diligence process and drafting and negotiating finance and project documents. Since this matter involved six separate financings under one umbrella, most of the finance and security documents, such as facility agreements, security documents and due ...

  11. Petrozuata: a Case Study of The Effective Use of Project Finance

    As illustrated in the Petrozuata case, limiting completion and operating risks are important undertakings. But project finance is most valuable as an instrument for managing sovereign risks. Indeed, the ability of project finance to limit sovereign risk is the one feature that cannot be replicated under conventional corporate financing schemes.

  12. NYIF: Deals in Project Finance: Case Studies and Analysis

    About What you'll learn Syllabus Instructors About this course In this course, we will review multiple case studies and transactions to recognize how to select the best deal for an investment. We'll look at the different players in a deal and understand what the risks are.

  13. Project Finance Portal

    January 2024 Faculty Research Pioneer Natural Resources: Enhancing the Capital Return Strategy with Variable Dividends By: Benjamin C. Esty, Elisabeth Kempf and Scott Mayfield June 2023 Faculty Research Graphic Packaging: Project Cowboy (A, B, C, & D) By: Benjamin C. Esty and Scott Mayfield

  14. Case Studies of Failed Project and Corporate Finance Investments

    This page includes my opinions on selected case studies in project finance and corporate finance. The cases involve financial nightmares and attempts to understand common themes as to what went wrong. If there is a thread that runs through the cases it is that managers had inflated opinions of why they deserved to earn high returns without ...

  15. Project Finance Model Case Study of Solar

    Project Finance Model Case Study of Solar This page includes a couple of case studies on creating a solar project finance model, about the simplest model structure you can imagine. I have put together a file with titles that illustrate how you can start from the fundamental operations and end up with investor returns and credit risk measures.

  16. PDF Project Finance Structuring: Case Study

    Project Finance Structuring: Case Study - Nam Theun 2 Session on Finance Sidharth Sinha Indian Institute of Management, Ahmedabad Project History 1970s - Mekong secretariat identified the hydropower potential of the Nam Theun River 1989/91 - World Bank feasibility study undertaken by Snowy Mountains Engineering Corp

  17. Project Finance Model Structure

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  20. Project Finance Case Study

    Project Finance Case Study - Dabhol Power Plant This webpage puts together information of the Dabhol electric power plant case. The case is old, but it has a lot of project finance lessons. One lesson is the dangerous way students are taught at Harvard before they go to Wall Street.

  21. PDF A Handbook of Case Studies in Finance

    controls, quality management, project management, water management, and energy conservation. I. Glossary of Terms 4 ... A Handbook of Case Studies in Finance 5 research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings). It is the

  22. Project Finance Case Study

    Strategic Financial Decision As a good businessman, this is not a good course of action. So he started to explore the options of raising the funds from the debt market, without disturbing the existing fund flow. He has good credit and can repay the loan from the revenue he gets from his project finance case study after completion.

  23. Case Studies

    Petrozuata - Oil Project Finance. Petrozuata is a wonderful case because it was touted as such a successful case study in use of project finance to gain a low cost of capital and was supposedly structured so well to manage risk. But five years after commercial operation the project was nationalized.