Through our funds and strategic relationships, Wilshire has the ability to provide both on and off-balance sheet solutions for strong owner/operators requiring additional equity and equity-like capital. Although the need for equity may be on a stand-alone basis, sponsorship often engages Wilshire to assist with the debt financing.
The structure and terms of equity capital varies and is driven by a number of factors, including:
- the overall experience, education, and breadth of the sponsorship team;
- sponsorship direct in-market experience with the specific asset type and transaction requirements;
- verifiable positive financial results as a sponsor on similar prior transactions;
- sponsorship regulatory and litigation history;
- sponsorship at-risk cash capital contributions;
- sponsorship personal financial strength and liquidity; and
- the source, form, and structure of other partners and equity.
Projects considered must be in primary markets and strong secondary markets with positive population, target demographic, and economic growth trends. Further, the feasibility, viability, execution risk of the transaction, transaction economics, budget, and the timing of the realization event/exit will impact the equity capital availability, structure, and cost.
Wilshire’s business model is a relationship-based approach that favors repeat, systematic-type business with strong sponsorship seeking an efficient capital partner in exchange for delivering consistent, above-average returns.