Private Banking

Morgan Black Private Banking offers a comprehensive and strategic approach to delivering private banking services. With a team of highly skilled and experienced professionals, both locally and internationally, we are dedicated to gaining a deep understanding of your unique financial profile and objectives.

Our commitment lies in collaborating closely with you to grasp your specific needs, goals, and how you personally define success in terms of your wealth.

By integrating regional private banking specialists with the vast resources of one of the world's largest and most reputable banks, Morgan Black is able to provide tailored private banking solutions. Our advisors possess a profound understanding of the intricacies associated with substantial wealth and work alongside you to deliver customized strategies.

Morgan Black Private Banking offers a range of services including depository, treasury management, and credit services. These services are designed to meet the liquidity and leveraging requirements of individuals and families with significant wealth, particularly when that wealth is derived from closely held family business enterprises or intricate trusts.

"Being independent from financial institutions and not engaging in product sales, we have the ability to provide strategic investment advice that is solely focused on our clients' best interests. Our commitment to this impartial approach has been instrumental in maintaining our consistent track record of success. We take pride in aligning ourselves with our clients, ensuring that we sit on the same side of the table."

Personal

Lending

  • Residential real estate financing for individuals, trusts, or Limited Liability Corporations
  • Liquid asset secured credit lines and loans
  • Unsecured credit lines and loans
  • Aircraft and yacht financing
  • Customized lending for families whose net worth is primarily held in private business
  • Pension and Insurance Risk Markets

"Successful project financing requires the combination of several factors including equity from project sponsors, debt from project lenders, and competent management of technical, environmental, economic, and political risks.."

For closely held business enterprises, commercial real estate, and complex estate planning strategies, we offer:

“Morgan Black Securities is a true full-service project financier. We can participate in project financing as an equity partner, lender, and/or advisor. We can manage the entire cycle of project origination, financial structuring, loan underwriting, and loan distribution in the syndication market.”

  • Credit secured by assets in a trust, or future trust distribution rights
  • Commercial real estate financing
  • Personal acquisition of business interests
  • Tax financing to preserve ownership of closely held assets
  • Personal acquisition of business interests
  • GRAT freeze strategies

Financing

Advisory Services

Our firm offers continuous guidance on financing market trends and the optimal utilization of leverage to adapt to evolving client needs or circumstances concerning investment performance, cash flow, and balance sheet dynamics, estate planning, tax law amendments, and changing family goals.

"Utilizing our expertise in financial engineering, Morgan Black Securities divides and allocates risk to the most qualified parties capable of assuming such risk. By employing this risk structuring approach, we are able to substantially enhance the risk-adjusted returns of the projects in which we engage."

While many investment advisors construct portfolios by establishing a single risk tolerance investment objective for their clients, we believe this approach is too simplistic for clients with complex financial needs. At Morgan Black, we recognize that your attitudes towards risk and return depend on the various purposes of your wealth. Your risk tolerance for assets allocated to wealth preservation may differ significantly from your risk/return expectations for assets designated for family legacy, entrepreneurial endeavors, or social impact initiatives.

By employing a distinct purpose-based approach to investment management, our aim is to assist you in identifying the diverse purposes of your wealth and subsequently creating tailored asset allocations and customized, segregated investment portfolios for each purpose. The objective of this approach is to achieve better alignment of risk with purpose, enhance risk factor diversification, and provide greater clarity regarding the necessary duration of each portfolio, considering the unique security and needs of individual family members and the long-term objectives of the entire family.

Our firm maintains an intense focus and extensive expertise in the field of investment discipline. We possess the capability to access, on your behalf, some of the finest investment opportunities across all asset classes and geographic categories, including private capital, themed investments, and social/impact investing. Our clients gain access to institutional investor privileges and pricing, customized investment structures, and comprehensive services encompassing manager sourcing, due diligence, and monitoring.

Our investment consulting objective is to assist you and your family in identifying all the purposes to which you wish to allocate your wealth, and subsequently develop and manage portfolios that help you achieve those objectives.

"Morgan Black Securities provides financing for both "greenfield" and "brownfield" projects in developing and emerging markets across various infrastructure subsectors, including transportation, telecommunications, energy, utilities, waste disposal, and social infrastructure."

We offer our clients a choice.

Our services include:

Discretionary management

Discretionary management is suitable for clients who prefer to entrust all investment decisions to Morgan Black. Our investment process encompasses portfolio structuring, implementation, and ongoing management. We consistently assess risk using various metrics and regularly engage in discussions with our clients regarding investment performance, themes, and actions during scheduled meetings. We prioritize transparency, accountability, and accessibility throughout the entire investment process.

Advisory solutions

This service empowers our clients to maintain complete control over their investments by utilizing our investment and execution capabilities. We formulate investment recommendations by carefully assessing each client's overall assets and situation. However, the final decision to act on those recommendations rests entirely with the clients themselves. Additionally, our execution capabilities provide clients with the advantage of accessing institutional levels of market access and trading capabilities, allowing them to reap the benefits.

“By being a financial partner in the continuous cycle of innovation and resource development, Morgan Black Securities achieves exceptional financial results and enhanced ability to fulfill its mandate..”

We offer our clients a choice.

Our services include:

Pooled vehicles

Pooled vehicles are investment portfolios in the form of discretionary funds. They cater to our clients seeking discretionary management services, as well as selective individual and institutional investors. We provide two categories of pooled vehicles:

Fund of funds

Managed by Morgan Black's team of investment professionals, these funds offer exposure to a diverse range of asset class strategies or tactical opportunities. Our discretionary management clients can utilize these strategies without incurring any additional investment fees.

Niche funds

These funds are operated by specialized third-party managers who excel in specific fields. Niche funds provide our clients with the opportunity to access managers and strategies that would typically be beyond their reach.

"Morgan Black Securities advises on approximately $15 billion in global investments for a diverse range of institutional clients, which include foreign governments, central banks, corporate and public pension funds, university endowments, and charitable foundations."

We offer our clients a choice.

Our services include:

Diversification and multi-managers

 

Our goal is to build resilient portfolios that cater to the unique requirements of our clients. We strive for diversification across various asset types and geographical locations to attain the desired risk profile. Our asset allocation strategy involves identifying exceptionally skilled managers who possess expertise in their respective domains and a commendable track record. This approach, encompassing multiple managers and asset classes, ensures a comprehensive diversification across:

  • Fixed Income
  • Equities
  • Alternative investments
  • Commodities
  • Private Equity
  • Real estate

Due diligence

 

We carefully select managers based on clearly defined criteria. Our dedicated in-house due diligence team thoroughly investigates and monitors each investment from both quantitative and qualitative perspectives. Our partners and senior team members maintain regular and direct communication with the managers. Additionally, our manager selection committee convenes regularly to approve new managers and to oversee existing investments, ensuring ongoing performance monitoring and position evaluation.

Risk management

Our extensive experience in capital markets allows us to have a thorough understanding of the risks associated with the portfolio. The construction of the portfolio is primarily guided by the desired level of risk tolerance rather than performance targets. To mitigate risk, we carefully implement limits to reduce exposures to different regions, sectors, and managers, and actively employ portfolio overlay strategies.

“Our process-driven approach is derived from a combination of long- term asset allocation based on macro outlook and tactical views that account for medium-term market conditions. Investment decisions are taken by the Asset Allocation Committee; comprised of the Executive Partners, senior team members, and select advisors."

Our approach is based on a process-driven methodology that combines long-term asset allocation influenced by macro outlook with tactical views that consider medium-term market conditions. Investment decisions are made by the Asset Allocation Committee, which consists of Executive Partners, senior team members, and select advisors.

Structured finance is a complex financial instrument designed for borrowers with unique and sophisticated needs. It encompasses various strategies and entities aimed at transferring risk. Typically, simple loans are inadequate for these borrowers, hence the implementation of more intricate and sophisticated financial instruments. In many cases, the requirements of large borrowers involve a series of discrete transactions aligned with operational needs, which cannot be fulfilled by a simple loan.

Structured finance products often involve derivatives, as well as securitized and collateralized debt instruments such as syndicated loans, collateralized mortgage obligations, collateralized bond obligations (CBOs), collateralized debt obligations (CDOs), credit default swaps (CDSs), and hybrid securities.

Structured financial products are not universally offered by all lenders and are generally not transferrable in the same manner as straightforward loans. They are typically provided to large borrowers seeking substantial cross-border capital injections or alternative sources of income.

The process of pooling and tranching effectively creates securities with payoff profiles resembling digital call options on the market index.

In essence, structured finance has empowered investors to provide insurance against significant declines in the overall economy, which is a key aspect of Morgan Black's approach. We offer structured risk and non-flow financing solutions to clients across multiple jurisdictions, industries, and asset classes.

Structured

Loan Process

  • 01Objective:

    5-10 Year Loan

  • 02Collateral:

    Obtained through a Security Pledge Agreement, wherein MBS leases a portfolio of highly rated Medium Term Notes securities from Institutional Investors in Latin America and Asia. Subsequently, the portfolio is transferred to the Client/Beneficiary of the loan to serve as collateral.

  • 03Security:

    To secure the collateral against default, MBS obtains from a reputable insurer/reinsurer a credit insurance in the form of Financial Guaranty Bond.

  • 04Funding:

    Funding is typically provided through a major bank that either possesses the necessary funds from Private Equity Funds or collaborates with various international banks to form a syndicated loan. The bank responsible for funding will distribute the funds and oversee the loan until it reaches maturity.

FINANCE

FLOWCHART

Structured Credit is a globally renowned platform that specializes in illiquid credit, securitizations, hard asset financing, and special situations. Our Structured Credit Solutions comprise the following components:

  • Portfolio of highly rated fixed income securities in the form of Medium Term Notes (MTN)
  • Collateral Risk Insurance
  • Private Equity Fund financing
  • Syndicated Loans

Integrated solutions include:

  • Broad Asset Backed Securities franchise
  • Financing Solutions
  • Structured Credit Trading (secondary trading and customized Solutions)
  • Syndicated Credit (structuring and syndicating private bank market credit)

"Our global presence, wide range of products, extensive capabilities, and track record of successfully executing complex transactions establish Morgan Black Securities' Structured Finance business as a leader in the industry."

We offer financing options for transactions that would otherwise be unable to secure traditional funding. Our process involves utilizing borrowed securities as collateral for the loans, alongside acquiring insurance coverage. This ensures that in the event of a borrower's default, the securities remain protected and are never at risk.
In addition to evaluating the project being financed, we compile this comprehensive package and present it to the funding bank in order to secure the desired loan proceeds.

STEP 1 - Engagement

  1. The engagement process is as follows: After reviewing the project and obtaining approval from our analysts and legal counsel, we will proceed in the following manner:
  1. We will issue our Letter of Interest, which will outline all the terms and conditions of the financing. This letter will be dated and typically have a validity period of 7-10 days.
  1. The Client will sign the letter of interest.
  1. We will send the draft of the Loan Agreement and Promissory Note, which will contain the terms of the proposed financing.
  1. Upon the Client's approval of the Loan Agreement and Promissory Note, we will proceed to sign and exchange the documents.
  1. The Client will then proceed with the payment of the agreed fees, to be deposited into the designated attorney trust account at Bank of America, New.
  1. Once the fees are received, the transaction will be considered complete.

STEP 2 - Procedure

The due diligence process will be initiated to thoroughly examine all relevant aspects of the project. A report will be presented within a maximum period of 15 days from the date of engagement. MBS will cover the costs associated with the due diligence. In the event that the report is negative and we are unable to proceed with the engagement, we will promptly inform the Client and arrange for the return of any advanced fees.
If the due diligence yields positive results, we will proceed with the validation of the mandates as follows:
  • Obtain a formal quote from the insurer. While the estimate will already be available prior to issuing our LOI, we will seek to have it ratified and, if necessary, updated.
  • Make a partial payment of the quoted premium to the insurer, ensuring that the quote remains active until the insurance policy is finalized at the time of the loan's disbursement.
  • Confirm the intention, already communicated through an intention letter with the securities provider, to lease a selected portfolio valued at approximately 125% of the loan's face value.
  • Make a partial payment of the leasing cost to the fiduciary responsible for the securities, ensuring that the portfolio remains available for the transaction until the lease is formalized upon the loan's final disbursement.
  • The portfolio will be selected from a list of securities, which will be confirmed with the designated representative from the lending bank providing the loan.

Step 3 - Conclusion

  1. The securities selected from the portfolio will be identified to the fiduciary bank. A formal request will be issued to transfer the securities to a designated fiduciary account, which will be opened specifically for this purpose.
  1. Simultaneously, the loan funds will be liquidated and transferred to another designated fiduciary account at the funding/paying agent bank. Typically, these funds are invested in short-term, liquid assets that are liquidated just prior to disbursement.
  1. The Client will sign a Credit Facility Agreement (CFA) in favor of the Funding/Paying Agent Bank. This agreement will contain the exact terms and conditions outlined in the Loan Agreement and Promissory Note signed with MBS. The CFA serves as a means of managing the loan proceeds throughout its duration.
  1. Communication will be established with the Client's receiving bank. Relevant compliance documents will be exchanged between the banks during this process.

Final disbursement of the loan will be executed in accordance with the instructions provided by the Client.

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