what does a project finance lawyer do

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What is it like to be a project finance lawyer?

The nature of project finance work also means that lawyers in this field gain a huge amount of knowledge about a particular industrial or public service sector plus, as Rachel tells us, a certain satisfaction in having played a role in the creation of something tangible: "My work is not just about money moving through the system.

What does a financial lawyer do?

Financial law overlaps with many other areas of life, and so financial lawyers are skilled at handling issues with: Banking (i.e. loans, mortgages, bank disputes) Bankruptcy claims (both consumer and business) Debts and collections Insurance and annuities Taxes Trusts, Wills, and Estates Securities Law

Who are the leading law firms in the project finance field?

Mayer Brown is one of the leading law firms globally in the project finance field, particularly in mining. Rachel tells us: "We've got partners and their teams working in this area here in London and across the U.S. and Asia.

What does a project finance associate do?

A project finance associate can expect to represent major financial institutions, sponsors and developers in complex domestic and cross-border project financings.

What is the role of project finance?

Project finance helps finance new investment by structuring the financing around the project's own operating cash flow and assets, without additional sponsor guarantees. Thus the technique is able to alleviate investment risk and raise finance at a relatively low cost, to the benefit of sponsor and investor alike.

Is project finance a good career?

Generally, project finance professionals have a similar or better work-life balance than investment banking or traditional consulting but can be substantially better depending on the firm. Hours range from 50-60 hours a week but can spike to 70-80 hours per week based on urgent demands of a live transaction.

What are project finance services?

What Is Project Finance? Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.

What makes a good finance lawyer?

Finance lawyers must have advanced research skills to research legal precedents and current laws. Banking lawyers need good interpersonal skills when meeting with clients. They must have good verbal and written communication skills to explain legal matters in layman's terms to their clients.

Is project finance stressful?

Analysts and associates are expected to do most of the heavy lifting here and need to possess the right modelling and quantitative skills. This is often the most stressful part of the job especially since the quantum of the deals is so large and the value at risk can be significant.

How do you qualify for project finance?

To get into project finance, one must know accounts and finance (CPA or MBA in finance) who have experience in infrastructure projects with analyzing and preparation of cost models including a comparison of costs and revenue and can determine project viability in terms of profit with all the knowledge of generating ...

What is project finance example?

Project finance is long-term financing of an independent capital investment, which are projects with cash flows and assets that can be distinctly identified. Real estate project finance is a classic example. Other examples of project finance include mining, oil and gas, and buildings and constructions.

What are the types of project finance?

There are three methods in Project Financing:Cost Share Financing or Low interest loan financing.Debts Financing.Equity Financing.

How is project finance different from corporate finance?

In the case of corporate finance, in the first stage of the company, financier looks for “commercial proof of concept” and that is revenue. In the case of project finance, they look for the projected cash flow as usual. As the company is starting, the investor's risk is much higher than normal.

What is the highest paid lawyer?

Highest paid lawyers: salary by practice areaTax attorney (tax law): $122,000.Corporate lawyer: $115,000.Employment lawyer: $87,000.Real Estate attorney: $86,000.Divorce attorney: $84,000.Immigration attorney: $84,000.Estate attorney: $83,000.Public Defender: $63,000.More items...•

Why do I need a financial lawyer?

Banking Matters: A financial services lawyer can help you with many banking issues. They can assist with banking documents like loans and mortgages. Also, they can help if you have a dispute or disagreement with your bank. Consumer and Business Bankruptcy Claims: Bankruptcy issues are generally very complicated.

What does finance law entail?

Financial law is the law and regulation of the insurance, derivatives, commercial banking, capital markets and investment management sectors. Understanding Financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.

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What is financial services lawyer?

A financial services lawyer is an attorney who helps people with financial legal issues. This kind of lawyer often specialize in a certain type of finance law. A financial lawyer can help clients with a wide variety of financial matters. Finance law includes many different specific areas of law. Finance law deals with the rules ...

What is finance law?

Finance law includes many different specific areas of law. Finance law deals with the rules that apply to financial matters. Finance law includes topics like insurance, investments, commercial banking, capital marketing, etc. Finances are very important in your everyday life.

What is an annuity lawyer?

Insurance and Annuities: A financial services lawyer can help you understand your insurance or annuities. An annuity is a contract used to create a savings or retirement plan. A financial services lawyer can explain the details of your annuity contract.

What kind of lawyer can help with taxes?

Depending on your specific situation, different tax laws will apply. A financial services lawyer that specializes in tax law can help you file your taxes. They will explain what tax laws affect your personal taxes or your business’ taxes. They can offer advice during the entire process of filing your taxes.

What does an experienced lawyer do for debt collectors?

An experienced lawyer can make sure that any debt collectors are following the rules for collecting debt. Also, they will know about the specific rules under The Fair Debt Collection Practices Act (“FDCPA”). A specialized attorney will also know debt collector harassment laws.

What is the reputation of a financial lawyer?

Reputation: The reputation of a financial lawyer is an important factor to consider. A financial lawyer with a good reputation in a specialized area of finance law will give you the best results. Personality: Everyone has a different personality.

Can a financial services lawyer help you file for bankruptcy?

For example, there are some financial services lawyers that only take tax law cases. This means they would not be able to help you file for bankruptcy. Instead, you would need a lawyer who specializes in bankruptcy law cases. Give a lawyer any facts and specific details about the financial issue you need help with.

What is project finance?

The Technical Definition: Project finance is used to refer to a non-recourse or limited recourse financing structure in which debt, equity and credit enhancement are combined for the construction and operation or the refinancing of a facility in a capital-intensive industry.

What are the two sides of a project finance transaction?

On both sides of the transaction, there are two broad buckets of services, advisory and lending. Advisory consists of providing financial advice but not providing financing for projects. Lending requires providing financing for the project through a debt or equity investment. To learn more about debt and equity in project finance, check out our article on Sources of Project Financing.

What is infrastructure finance?

Financial jobs in infrastructure consists of advising, directly providing capital, or coordinating the financial arrangements for the project. There are many firms that satisfy various financial needs of a project and involve different finance roles and responsibilities in a financial organization. However, most project finance deals are large and complex in nature, therefore requiring several financial firms to be involved in a transaction.

What are some examples of private equity funds?

Private equity funds such as John Laing, Plenary, and Skanska. All financial jobs in project finance require knowledge in how to build a project financial model. Even jobs in the technical and legal groups of project finance requires basic knowledge of project finance modeling.

What happens if a developer does not do buy side financial advisory?

If a developer chooses not to do buy-side financial advisory in-house, a financial advisory firm will financially structure the developer’s deal and the final deal will be negotiated with the sell-side financial advisor. There are times when an investment bank will offer buy-side financial advisory services as an additional service to lending.

What is a developer?

A developer has many roles and responsibilities and works with a team to bring an idea from concept to completed construction. They are responsible for coordinating all parties involved in the development of the project including, finance, legal, and technical elements.

Can a project finance firm be involved on both sides?

There are financial organizations who can provide services to both sides of project finance deals; however, one firm is never involved on both sides on the same transaction due to conflicts of interest. To learn more about how to break into the industry, read our overview of project finance career paths.

Breakdown of the Definition

Now let us break down each of the components of this definition to get a detailed understanding of what it incorporates:

Why Do Sponsors Use Project Finance?

A sponsor (the entity requiring finance to fund projects) can choose to finance a new project using two alternatives:

How Is Project Finance Difference from Corporate Finance?

Now that we have a basic understanding of what project finance means, let us understand how it differs from corporate finance. The table below outlines important differences between the two types of financing that need to be taken into account.

Who are the Sponsors of Project Finance?

By participating in a project finance venture, each project sponsor pursues a clear objective, which differs depending on the type of sponsor. In brief, four types of sponsors are very often involved in such transactions:

Summary and Additional Resources

We learned about the basic characteristics of project finance, how it is different from corporate finance, its major uses, and the type of sponsors involved.