Simple Process Flow
$500M and Up
Funding Process & Procedures
Funding structure, deposit mechanics & disbursement schedule.
Client Account Structure
The client's 10% capital contribution is maintained in an account held in the client's own name at a designated bank — UBS or Bank of America / Merrill Lynch — under a contractual hold with M. Prato that never blocks the account with the bank, total funds released on or before 180 days.
Note: This program does not require an insurance wrap. Because the client's deposit remains at all times in an account held in the client's own name and under the client's full control, no insurance instrument is necessary.
Program at a Glance
Funding Facility
Minimum $500 million — M. Prato provides 90%, client provides 10%
Fees
6% one-time Funding Facilitation Fee, paid as the client receives draws (equivalent to 0.6% per year over the 10-year term)
Interest
Less than 1% per annum on outstanding amounts
Cap on Cost of Capital
Total cost of capital shall not exceed 1.6% per annum (average annual cost across the 10-year term)
Term
10 years
Upfront Costs
None — no engagement fee, no earnest money. Nothing is paid to M. Prato until the client receives funding.
Commitment Timing
Commitment Letter within 3 business days of receipt of completed application, proof of funds, and signed Client Engagement Agreement. Funding contractually committed in less than 2 weeks.
Client's Equity
Stays in until the draw schedule is complete — a maximum of 180 days, after completed documents unless the client requests rolls or extensions.
M. Prato Compensation
M. Prato receives agreed equity in the project in lieu of conventional bank fees, interest, and payment obligations.
1. Overview
M. Prato provides a funding facility for ninety percent (90%) of the transaction. The remaining ten percent (10%) is shown as liquidity — held by the client in an account at UBS or Bank of America / Merrill Lynch, as outlined herein. This document is a description of services only. It is not an offer, a commitment to lend, or an agreement. Funding is committed only through M. Prato's Commitment Letter and executed definitive documents with M. Prato.
2. Sample Transaction
The figures below illustrate the funding structure using a representative $500 million transaction.
Minimum Transaction
$500 Million USD
Client Funding (10%)
$50 Million USD
M. Prato Funding (90%)
$450 Million USD
3. Transaction Process Flow
The transaction proceeds through five sequential steps, from client verification through to full funding.
01
Client Proofs Up
The client demonstrates that its 10% funding is available and held in the client's name (e.g., an account snapshot, bank letter, or similar). At this stage the funds need not be held in a designated bank but must be held in a top-10 bank.
02
Papering the Deal
The client submits a complete funding application for approval and signs the Client Engagement Agreement with M. Prato and Associates.
03
Master Project Funding Agreement
The client signs (i) a non-binding (DRAFT) Master Project Funding Agreement with M. Prato; (ii) M. Prato then prepares the final binding Master Project Funding Agreement; and (iii) the Master Project Funding Agreement is executed between the client and M. Prato via DocuSign.
04
Client Moves Funds
The client moves the required 10% funds to a designated bank account (UBS or Bank of America / Merrill Lynch). If the funds are already held with a designated bank, this is acceptable. The account is in the client's name, with the client having full control over the account, as is customary.
05
M. Prato Funds SPC
As per the Master Project Funding Agreement, M. Prato funds 40% of the project funding 45 business days after the Master Project Funding Agreement is signed and the client's 10% is verified in the designated bank account, 30% at 90 business days, and 30% at 135 business days. Funds are available to the client as they are placed into the SPC bank account, as will be outlined in the final binding Master Project Funding Agreement.
Client's Own Account
The client's 10% is held in the client's own M. Prato-designated account until M. Prato fully funds the project — 180 days maximum.
Special Purpose Company
An SPC is formed, owned 50% by the client and 50% by M. Prato, to serve as the funding vehicle. Both signatures are required on every disbursement.
4. Funding Disbursement Schedule
Once the Master Project Funding Agreement is signed and the client's 10% is verified in the designated bank account, capital is released to the project SPC in three tranches, each spaced 45 business days apart.
40%
$180 Million
Day 45
Disbursed 45 business days after Master Project Funding Agreement signing and Step 04 verification.
30%
$135 Million
Day 90
Disbursed 45 business days after the first disbursement.
30%
$135 Million
Day 135
Disbursed 45 business days after the second disbursement.
After the third disbursement, the client is no longer obligated to maintain a minimum balance in their 10% designated bank account.
5. Summary
Total transaction size: $500 million and up (10% provided by the client / 90% provided by M. Prato).
A 50/50 SPC is the vehicle through which funds are disbursed to the project.
Disbursement occurs in three tranches — 40%, 30%, and 30% — at 45-business-day intervals.
Available October 6, 2026, through November 1, 2026.
Special procedures are required when the client has a third party providing the 10% deposit and/or funds are not in the client's own name.
Ready to discuss your transaction?
Download the funding process document, or submit a private inquiry and our team will be in touch to discuss your project requirements.