Sector 04

Federal & Government
Contracting Debt Capital

Structured Finance arranges senior debt and mezzanine capital facilities for military infrastructure, VA medical centers, civic developments, and government prime contractors globally.

Origination Dynamics

Navigating Federal Appropriations, Mobilization & Compliance

Financing federal initiatives requires navigating Assignment of Claims protocols, DCAA accounting compliance, CMMC technical mandates, and government budget cycles. As traditional banks freeze mobilization debt during protest periods or continuing resolutions, direct private credit provides the speed, flexibility, and capital certainty needed to execute mission-critical projects.

The Traditional Bank Challenge

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    Protest & Shutdown Stalls: Traditional bank syndicates freeze mobilization funding during GAO protest windows, CR budget delays, or federal shutdown friction.
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    Floating Rate Volatility: Bank facilities rely almost exclusively on floating SOFR rates, exposing multi-year task orders and contract lifecycles to interest rate shifts.
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    Rigid Advance Formulas: Banks enforce conservative advance rate caps against incremental task orders and require complex statutory Assignment of Claims filing.
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    Binary Compliance Covenants: Banks write restrictive DCAA, CPARS, and CMMC 2.0 technical covenants into loans, stalling syndication over minor administrative friction.

The Structured Finance Solution

  • Higher Leverage: We structure combined senior and mezzanine debt stacks that reach up to 90% LTC, drastically reducing the sponsor's cash equity burden.
  • Fixed-Rate Certainty: All placed facilities utilize fixed interest rates, protecting your underwriting model from market volatility from mobilization to contract completion.
  • Direct Private Capital: We place debt directly with private institutional lenders, eliminating the delays and friction of relying on a dozen regional banks to share the note.
  • Milestone Capital Draws: Disbursements accommodate contract mobilization, equipment procurement, and task-order performance milestones for seamless execution.
Asset Scope

Covered Government Sectors

Veterans Affairs (VA) Medical Facilities

Ground-up construction, modernizations, and lease-backed expansion debt for regional VA hospitals, outpatient clinics, and military healthcare infrastructure.

Department of Defense (DoD) & Security Complexes

Financing for secure defense installations, SCIF-compliant research centers, military housing privatization (MHPI), and logistics hubs.

Federal Agency Headquarters & Civic Hubs

Senior debt facilities for GSA-leased federal regional offices, civic justice centers, federal courthouses, and municipal government complexes.

Energy Savings Performance Contracts (ESPCs)

Specialized debt structures for large-scale energy efficiency and utility infrastructure retrofits backed by guaranteed ESCO savings.

Defense Industrial Base & Logistics

Capital placement for prime contractor mobilization, heavy equipment procurement, overseas logistical networks, and specialized defense supply infrastructure.

And Other Government-Mandated & Civic Infrastructure

Custom debt facilities for specialized municipal developments, public-private partnerships (P3s), and civic infrastructure assets.

Origination Desk

Submit Your Government Project

If you have a federal, defense, or municipal contracting project requiring debt financing, submit your project details directly to our origination desk for underwriting review.