Capital Advisory engagements
VS Capital Group's Capital Advisory practice typically covers:
- Capital strategy and stack design for active transactions
- Refinance planning for maturing loans, including defeasance analysis and forward rate strategy
- Recapitalization advisory, bringing in new equity partners, restructuring existing partnerships, replacing existing debt
- Distressed and special-situation advisory, loan modifications, discounted payoffs, note sales, deed-in-lieu
- Lender selection and process management for institutional sponsors
- Portfolio-level capital markets strategy across multiple assets
Why sponsors engage VS Capital Group strategically
Capital strategy decisions made before a transaction has term sheets in hand frequently determine the deal's ultimate economics. The choice between agency and CMBS, fixed and floating, recourse and non-recourse, senior-plus-mezz and senior-plus-pref, full leverage and lower leverage, each of these decisions has multi-year economic consequences that compound across the hold.
We engage with sponsors to model these decisions quantitatively, against multiple rate and market scenarios, and recommend a strategy that aligns with the sponsor's business plan and risk profile.
Distressed and special-situation advisory
Over-levered assets, maturing loans with no clear refinance path, distressed sponsors, and judicial sales are increasingly common in the current cycle. VS Capital Group advises on every option, loan modification, A-Note / B-Note split, discounted payoff, note sale, deed-in-lieu, and judicial process, and runs the financial analysis required to support whichever path the sponsor and its capital partners pursue.
Frequently asked questions
- When should a sponsor engage a capital advisor versus going directly to lenders?
- Sponsors should engage a capital advisor whenever the transaction's complexity, size, or strategic importance justifies a competitive process across multiple lenders, which is virtually every institutional transaction. A capital advisor delivers material economic improvement through competitive tension, structural negotiation, and market intelligence that a single lender will not provide.
- Does VS Capital Group handle distressed and special situations?
- Yes. VS Capital Group advises sponsors and lenders on loan modifications, discounted payoffs, note sales, deed-in-lieu transactions, and judicial process. We run the financial analysis, manage the lender dialogue, and structure the workout or restructuring path that best protects the sponsor's basis.
- How is Capital Advisory billed?
- Capital Advisory engagements are typically billed as a transaction fee on closed financings, an advisory retainer for ongoing portfolio-level engagements, or a success fee on completed recapitalizations and workouts. Fee structures are tailored to the engagement and disclosed in advance.
- Can VS Capital Group advise on existing lender relationships?
- Yes. We routinely advise sponsors on lender negotiations within existing relationships, loan modifications, extensions, future-funding requests, recourse renegotiation, and prepayment discussions, including situations where the sponsor maintains the underlying relationship and we advise behind the scenes.
- Will VS Capital Group represent both debt and equity simultaneously?
- Yes. Most institutional transactions require coordinated debt and equity placement. VS Capital Group regularly structures and places the entire capital stack, senior, subordinate, and equity, under a single integrated engagement, ensuring the layers align economically and structurally at closing.