Our Approach
From Thesis to Closing: Structured, Auditable Execution
We combine local market intelligence with institutional-grade diligence, risk framing, and transaction structuring.
Workflow
Screen → Diligence → Structure → Execute → Monitor
01
Screen
Proprietary pipeline sourced through relationships and market intelligence. Each opportunity is evaluated against institutional thresholds before any resources are committed.
02
Diligence
Multidimensional due diligence—financial, legal, regulatory, ESG, and macro risk. Fact vs. assumption classification for every model input.
03
Structure
Tailored debt, equity, or hybrid solutions aligned with investor requirements. Security package architecture, risk allocation, and incentive alignment.
04
Execute
Negotiation, coordination, and transaction closing. Clear milestones, managed counterparties, and decision-grade materials for IC review.
05
Monitor
Ongoing governance, reporting cadence, and KPI tracking. Ring-fenced structures with documented accountability.
Proprietary Framework
SQUA™ — SENG Quantitative Underwriting Architecture
A proprietary credit risk framework designed to evaluate large-scale infrastructure, energy, and private credit transactions (USD 20M–500M+) using institutional-grade quantitative methods.
SBI ≥ 80
Institutional Grade
Meets DFI/institutional investor standards without material structural enhancements.
65 ≤ SBI < 80
Structurable
Viable with targeted credit enhancements: guarantees, reserves, covenants.
SBI < 65
Non-Bankable
Fundamental structural deficiencies. Requires sponsor recapitalization or redesign.
Four Pillars
Composite Bankability Index Components
Pillar 1: Stochastic Cash Flow & DSCR Simulation
Quantifies the probability distribution of Debt Service Coverage Ratio under uncertainty. Incorporates volatility in revenue drivers (FX, volume, price), operating costs, and debt service obligations.
10,000 Monte Carlo scenarios using Latin Hypercube Sampling
FX Rate modeled via Geometric Brownian Motion (σ = 12–15% annually)
Volume availability factor bounded [85%, 98%] by asset class
Output: P10/P50/P90 DSCR, VaR95, probability of covenant breach
DFIs require P10 DSCR ≥ 1.20x and P(DSCR < 1.0) < 2% for investment-grade classification.
Pillar 2: Contractual Enforceability & Cash Flow Reliability
Translates legal and contractual risk into quantitative credit adjustments. Not all “contracted” cash flows are equally enforceable.
Take-or-Pay Strength (30%): Unconditional payment obligation analysis
Governing Law & Jurisdiction (20%): NY/English law preference
Termination Compensation (20%): NPV of remaining cash flows
Lender Step-in Rights (15%): Cure period and replacement rights
CRS ≥ 85: Institutional Grade | 70–85: Structurable | < 70: High Legal Risk.
Pillar 3: Collateral & Recovery Waterfall Simulation
Quantifies Recovery Rate and Loss Given Default under distressed scenarios, accounting for Mexican insolvency law and collateral priority.
Asset Liquidation Value model with 50–70% liquidation discounts
Recovery Waterfall per Mexican Ley de Concursos Mercantiles
10,000 Monte Carlo recovery scenarios with stochastic ALV
Claims priority: Labor → Tax → 1st Lien → Mezzanine → Unsecured
DFIs require P10 Recovery Rate ≥ 60% for 1st lien senior secured infrastructure positions.
Pillar 4: Regulatory & Political Risk
Evaluates permit status, political risk, and sovereign support or opposition. Factors in expropriation risk, tariff changes, and regulatory override.
Environmental permits (SEMARNAT) verification
Interconnection permits (CRE/CENACE) status
Political risk assessment: expropriation, tariff changes
Sovereign support analysis and opposition mapping
Full permit documentation and regulatory clearance required for institutional-grade classification.
Stress Testing
Mandatory Scenario Analysis
Every transaction is evaluated under standardized stress scenarios to ensure resilience.
Base Case
- •Contracted volumes
- •Market-forward FX/rates
- •Historical OpEx trends
Optimistic
- •+10% volume
- •-5% FX depreciation
- •-50 bps interest rates
Conservative (Stress)
- •-15% volume, +20% FX depreciation
- •+200 bps interest rates
- •6-month payment delay
Activation Criteria
What We Require Before Engagement
Full SQUA™ activation is data-contingent. Without complete data, outputs are indicative only.
Financial Data
- Audited financial statements (3+ years)
- Monthly cash flow model with transparent formulas
- Debt schedule: principal, interest, covenants
Contractual Data
- Executed offtake agreements (PPA, gas supply)
- O&M and EPC contracts
- Interconnection agreements
Legal & Collateral
- Lien search results
- Security agreements and pledges
- Legal opinions on enforceability
Regulatory & Permits
- Environmental permits (SEMARNAT)
- Land use and interconnection permits
- Import/export permits (if applicable)
Ready for Institutional-Grade Evaluation?
Submit your project for SQUA™ assessment. Counterparty names and terms remain confidential under NDA.
Request Information