What are barriers to Innovative Financing?
Peter Vanderwal, our Strategic Growth & Innovation Development Financing Lead, is interviewed at the WEALTH Arabia Summit - organised by CPI Financial.
In terms of product structure, what developments do you see in the future?
I mean, so honestly, the work I’m doing at the moment is at the real forefront of the innovative financing structures and I would be lying if I didn’t say the transactional costs at the moment are huge and almost an application killer. It’s taken the commitment of Palladium to say, “Look we are going to work at this without any return because we believe in the transformative nature of it.”
If we keep on going from one deal to another, which is so unique to be done in such a bespoke manner, we’re not going to get the efficiencies you would expect as you start learning more and more about what works and what doesn’t.
So the real barrier for me at moment in this space and these new financial structures – social impact bonds, social benefit bonds, development impact bonds, social yield notes - the real barrier at the moment is from the public sector side not having the appropriate procurement and contracting processes and structures in place. And that’s really an area that we need to work really closely with.