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Development Capital & Financing, LLC
Training

GPFAC offers a comprehensive credit training program in Project & Structured Finance and Financial Modeling.  This program has three components:

1.  Classroom Instruction;

2.  Experience-Based Learning (“EBL”); and

3.  Mentoring

Classroom Instruction

GPFAC has developed a broad range of training modules in the area of Project & Structured Finance, including courses in the following:
GPFAC Principals have been delivering training programs for over 30 years in the US, Canada, Latin America, Western Europe, Eastern Europe, Middle East, Africa, South Asia, and the Far East.  The broad range of categories and representative clients includes:

Industrial Companies (ABB, GE Capital)
Government Institutions (US Department of Energy, PDVSA)
Banks and Financial Institutions (EBRD, National Commercial Bank)

GPFAC will custom-tailor a training program based upon an organization's specific needs.  However, GPFAC offers three off-the-shelf workshops that have found broad applicability:

2-day workshop in Financial Modeling.  This workshop introduces participants to the building of financial models for complex project finance transactions.  It offers:
(a) A practical understanding of the fundamentals of financial modeling;
(b) Detailed explanation of GPFAC's approach to financial modeling which is based upon customizing the project-specific aspects of any transaction and then using this output to generate the financial statements (which are not project-specific).  This approach results in models that are considerably less complex compared to those used in the industry, where the most common approach is to de-customize a complex existing model and then amend that to reflect a new project; and
(c) 
A copy of GPFAC's Base Financial Model in provided to all participants along with a detailed explanation of the formulas in each spreadsheet.  Step-by-step instructions are provided to help participants use the GPFAC approach to model their transactions.

3-day workshop in Project Finance.  This workshop offers a business perspective on project finance that other training programs do not address.
(a) Outlines the principles of project finance and explains why it is a zero-sum game.  Introduces the risk vs. reward matrix as a tool to examine whether the risks and rewards for each role are balanced.  Explains the difference between project finance and corporate finance;   
(b) A class exercise demonstrates the assessment of countrerparty risk;
(c) Robust discussion of financial structuring, including debt service cover ratios, cash waterfall, and cash available for debt service.  Clear explanation of the concepts underlying liquidity and leverage.  The use of various instruments (restricted accounts, cash sweeps, claw-backs, and debt sculpting).  Case studies illustrating these techniques for a US renewable energy project and a recent example that explores financial structuring trends in the GCC countries (equity bridge loans, mini perms, shareholder loans, and refinancing);
(c) A section on loan documentation that starts with the collateral and security package, cash waterfall, key covenants and the consequences of a breach.  A description of the key project documents, financing documents, security documents, and supporting documents that highlights the key purpose of each document.  Participants receive a summary of the transaction documents as well as a due diligence list;
(d) Introduces a methodology to screen projects as considerable time and resources are expended pursuing projects that do not go ahead.  There is a class exercise on screening a project and this leads to a broader discussion of managing priorities in a diversified portfolio; and
(e) Explains the importance of bankable commercial contracts and a class exercise simulates the negotiation of key provisions of an EPC contract to illustrate how the individual goals and objectives of the participants in a commercial negotiation often make these contracts unacceptable to lenders.

4-day workshop in Project Finance and Financial Modeling.  This workshop combines the most essential aspects of the 3-day workshop on Project Finance and the 2-day workshop on Financial Modeling.  The Financial Modeling section focuses on using a financial model instead of building one.  The content of this workshop has been developed in close coordination with leading commercial banks and industrial companies with the objective of covering project finance and modeling in a 4-day workshop..

What differentiates GPFAC training programs are the following:
(a)  Content is not boiler-plate material downloaded from the Internet;
(b)  Focus on real knowledge, practical applications, and tools that can be used on the job;
(c)  Realistic and attainable learning objectives;
(d)  Emphasis on learning by doing (quizzes, exercises, case studies, simulated negotiation);
(e)  Engaging, animated workshops (nobody falls asleep); and
(f)  Instructors are practicing project finance and modeling professionals with extensive financial closing experience (not academics with limited closing experience).

Experience-Based Learning (EBL)

EBL is an extension of Classroom Instruction that enables rotational employees to gain a practical understanding of other departments in an organization:
(a) Through short-term assignments (typically of 3-6 months duration).
(b) Where the objective, over time, is to improve job performance and promote a common credit culture within the organization.

GPFAC has summarized the key EBL concepts for a successful program and prepared a set of general administrative guidelines to implement an EBL program:
(a) Based upon best practices in the industry; and
(b) With a detailed framework containing all the administrative tools necessary for implementing a successful program.

Mentoring

Mentoring is the third leg of a comprehensive training program:

(a)   An employee (the "Mentee") is matched with a Mentor (internal or external) with the objective of facilitating the Mentee’s personal and professional career growth.
(b)  Synergistic with Classroom Instruction and EBL
(c) However, the duration of a Mentor-Mentee relationship generally is of a significantly longer duration than an EBL program.
(d) Benefits to an organization include:
- Better career development of employees,
- Increased retention rates; and
- Higher productivity.
(e) A key challenge is ensuring that the role of the Mentor does not undermine the role of the employee’s supervisor.

GPFAC has summarized the
key Mentoring concepts for a successful program and prepared a set of general administrative guidelines to implement a Mentoring program:
(a Based upon best practices in the industry.
(b) 
With a detailed framework containing all the administrative tools necessary for implementing a successful program.

See case study
 on a comprehensive training program with Classroom Instruction, Experience-Based Learning, and Mentoring at the US Department of Energy.