Demystifying the 90% LTC Capital Stack: Institutional Solutions for Mega-Projects

For ultra-high-net-worth developers executing $165M+ mega-projects, traditional depository banks present a rigid structural ceiling—often capping construction facilities at 60% to 65% LTC. This forces sponsors to syndicate expensive preferred equity, surrender significant asset control, and dilute their Internal Rate of Return (IRR) simply to bridge massive capital gaps.

The solution is an integrated, non-bank capital stack. By synchronizing senior construction debt (~75% LTC) and a subordinated mezzanine facility (~15% LTC) under a single institutional mandate, sponsors can safely achieve up to 90% leverage. This streamlined architecture eliminates complex intercreditor conflicts, utilizes fixed benchmark pricing to hedge against macroeconomic volatility, and allows prior invested capital—such as land value and engineering expenses—to satisfy sponsor equity requirements.