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Berkshire Hills Capital over the years has worked on projects in various sectors. BHC has found that investing in Real Estate securities consistently delivers the best ROI. With the introduction of the SEC Reg A+ regulations BHC with its advanced investor acquisition techniques is in an excellent position to develop and complete funding projects for selected private and public companies that will result in publicly traded securities.
BHC helped source over 150MM USD in LP Equity Partnerships and Family Office Relationships for LCP (Leaf Capital Partners) in Latin America, Southeast Asia, and Europe for their current pipeline including developing a fund for female entrepreneurs, commercial real estate developments in Mexico and manufacturing acquisitions.
BHC in partnership with Duxhills secured several term sheets and ultimately placed 130MM USD in financing for expansion capital for Champney’s Hotel arm.
Livento Group is a dynamic group that specializes in acquiring and developing companies with disruptive business models in film, content, and technology for fund managers globally as well as having a commercial real estate development arm in Prague. As an equity partner and stakeholder, BHC assists with growing assets for their various divisions. Currently with roughly 44MM USD AUM and on track to double that by end of Q1 of 2024.
At Berkshire Hills Capital, we help businesses navigate complex financial landscapes with strategic advisory, capital solutions, and growth-focused investments. Our case studies highlight how we’ve driven success for our clients.
Introduction:
Berkshire Hills Capital (BHC), in a co-partnership effort with Duxhill Associates, served as the corporate financial and operational advisors in structuring a successful cross-border financing deal for Champneys Health Resorts, securing a £108 million loan from Cheyne Capital Real Estate in August 2022. This case study highlights BHC and Duxhill Associates’ strategic advisory role in preparing Champneys for finance qualifications during a highly challenging economic period, demonstrating their expertise in cross-border financing and operational restructuring.
Background of Champneys Health Resorts:
Berkshire Hills Capital and Duxhill Associates’ Role As the corporate and financial advisory firms, BHC and Duxhill Associates played a pivotal role in structuring the financing strategy and preparing Champneys for qualification by institutional investors:
Financial and Operational Restructuring:
Capital Formation and Investor Readiness:
Strategic Advisory and Deal Structuring:
The £108 Million Loan Deal:
Outcome and Impact:
Client Background:
Project Overview: Camacho Homes is a real estate developer focused on sustainable residential and commercial developments across Latin America. The project consisted of two residential towers totaling 285 units, with a strategic market focus on middle-to-high-income buyers. The development aimed to optimize land use, enhance urban living standards, and integrate energy-efficient building designs.
Role of Berkshire Hills Capital (BHC): BHC was the Lead Project Advisor, providing comprehensive corporate, financial, and operational advisory services. The firm played a pivotal role in securing project financing, structuring feasibility assessments, and ensuring regulatory compliance.
BHC secured a $2.5 million pre-construction bridge loan with negotiated terms of 1 year, with deferred principal and interest until it was taken out by the construction loan.
Development Phases & Strategic Advisory by BHC
BHC conducted a comprehensive feasibility analysis to determine market demand, financial viability, and development risks associated with the project. This process entailed an in-depth assessment of real estate market trends and the identification of high-potential locations, ensuring the development was strategically positioned for maximum value. Benchmarking against competitor projects enabled precise pricing strategies and project positioning within the market. Environmental and geotechnical site evaluations were conducted to ensure full compliance with zoning regulations and sustainability requirements. In parallel, meticulous budgeting and scheduling strategies were developed to forecast revenues and manage costs effectively. Additionally, existing real estate redevelopment opportunities were explored to optimize asset repositioning strategies.
During the pre-construction phase, BHC guided Camacho Homes through key strategic decisions that ensured project viability and regulatory compliance. The firm facilitated the selection and negotiation of architectural and engineering contracts, ensuring that top-tier professionals were engaged in the design and planning stages. Governmental approvals were coordinated efficiently to streamline zoning and land use permits. A strong emphasis was placed on sustainability, incorporating energy-efficient materials and smart technology to enhance operational efficiency and reduce long-term costs. Additionally, the financial advisory team conducted a cost-benefit evaluation of emerging project management technologies, ensuring that AI-driven tools were leveraged for optimal efficiency. Security and infrastructure planning were also integrated to establish modern safety protocols and ensure long-term resilience.
As construction progressed, BHC’s financial oversight played a pivotal role in maintaining budget adherence and project efficiency. The firm led negotiations with general contractors and subcontractors, ensuring the selection of reliable partners committed to delivering high-quality work within the agreed timelines. Long-term operations and maintenance planning was implemented to optimize asset management strategies post-construction. Tenant construction management was also structured to allow for unit customizations in pre-sold properties, catering to buyer preferences and enhancing customer satisfaction. Finally, a seamless handover to operational teams was executed, ensuring a smooth transition from construction to property management.
Throughout the development lifecycle, BHC maintained a hands-on advisory role to maximize asset value and ensure financial stability. A robust financial reporting framework was established to support accounting, control, and reporting mechanisms. Active budget and schedule oversight allowed for early identification and mitigation of potential cost overruns. Investment and asset management strategies were structured to ensure financing options remained accessible for future developments. In parallel, a targeted marketing and sales strategy was designed to position the property for strong market entry, ensuring demand generation and pre-sale success.
Financial Breakdown & Investment Gaps
BHC’s financial structuring efforts resulted in a well-defined capital allocation plan that enhanced investment potential. At the pre-advisory stage, Camacho Homes held total assets of $11.2M against total liabilities of $7.5M, with a projected sales revenue of $15.2M and an estimated operating income of $3.1M.
To support the project’s capital needs, BHC secured a $2.5M bridge loan for pre-construction activities and structured a $25M capital raise for full-scale construction and expansion. A dedicated $1.2M marketing budget was allocated to ensure optimal positioning and demand generation, while $2M was invested in infrastructure and sustainability initiatives to enhance energy efficiency and operational longevity.
Results & Outcomes:
BHC’s strategic advisory yielded significant results that positioned Camacho Homes as a formidable player in the real estate development sector:
Conclusion:
BHC’s expert guidance and strategic financial structuring enabled Camacho Homes to develop a landmark 285-unit residential project with strong investor confidence, efficient project execution, and a successful pre-sales strategy. With a well-executed roadmap and sustainability-focused development approach, Camacho Homes is now positioned for long-term growth in Latin America’s competitive real estate market.
Client Background:
The Coheco Badeo 500MW Pumped Storage Hydroelectric Project represents a transformative renewable energy initiative aimed at enhancing energy security, grid stability, and sustainable infrastructure in the Philippines. This project leverages pumped storage technology to provide a reliable, long-term energy solution that aligns with the country’s growing electricity demand and renewable energy targets.
Key to its execution was a multi-layered investment strategy, structured financing, and stakeholder collaboration. Berkshire Hills Capital (BHC), in partnership with Leaf Capital Partners and Covarrubia Energy, secured $250 million in limited recourse project financing through Ex-Im Philippines Bank to fund critical infrastructure, including a 230KM transmission line. This financing structure ensured that repayment was linked to the project’s revenue rather than government-backed guarantees, mitigating risk exposure.
The project faced regulatory complexities, indigenous stakeholder negotiations, and capital formation hurdles, requiring extensive advisory, technical feasibility studies, and due diligence. Korea Engineering Consultant Corp. (KECC) played a pivotal role in providing high-caliber engineering and feasibility assessments, ensuring structural integrity, environmental compliance, and operational efficiency.
Despite delays due to financing shortfalls and shifting policy landscapes, the project was positioned as a strategic renewable energy asset. The Coheco Badeo initiative not only aimed to decarbonize the energy mix but also set a precedent for sustainable hydropower investments, demonstrating how strategic financing, stakeholder engagement, and robust engineering solutions can unlock value in large-scale infrastructure projects.
Challenges & Business Needs:
Capital Raising & Financial Structuring
Regulatory & Compliance Hurdles
Engineering & Infrastructure Development
Stakeholder & Community Engagement
Strategic Partnerships & Execution
Advisory Approach & Strategic Execution:
Capital Formation & Financial Advisory
Regulatory & Compliance Strategy
Engineering & Technical Advisory
Stakeholder & Community Relations
Execution & Strategic Partnerships
Financial Breakdown & Investment Gaps
Operational & Technical Costs
Financing Delays & Investment Gaps
Results & Outcomes:
Financial Impact
Regulatory & Compliance Success
Engineering & Technical Milestones
Project Positioning & Market Impact
Client Background:
PPM Toys, a Mexico-based toy company with a 35-year track record, specializes in toy commercialization, development, and licensing for major brands such as Hasbro, Warner Brothers, and Mattel. The company has a strong retail presence in Latin America, distributing through Walmart, Amazon, Liverpool, and Coppel. In 2023, PPM Toys engaged Berkshire Hills Capital (BHC) to structure its U.S. expansion strategy and facilitate an acquisition deal with Starfleet Innotech, Inc.
PPM Toys’ U.S. expansion represents a strategic move to leverage licensing agreements, enter new retail partnerships, and integrate digital transformation strategies, including e-commerce and NFTs. The project required a robust M&A advisory process, financial structuring, and operational realignment to ensure success in the competitive U.S. toy industry.
Challenges & Business Needs
Capital raising and financial structuring were critical for PPM Toys’ expansion efforts, requiring substantial funding to support working capital, supplier costs, and licensing agreements. The company needed liquidity support to ensure a steady inventory supply and maintain operational efficiency. To address these financial demands, Berkshire Hills Capital structured an equity financing deal that enabled Starfleet Innotech to acquire a majority stake in PPM Toys, ensuring the necessary capital was in place to drive strategic growth.
Navigating the regulatory and compliance landscape was another essential challenge, as PPM Toys had to ensure its products adhered to U.S. safety and quality regulations, including compliance with CPSC and ASTM standards. Additionally, the company underwent a corporate restructuring, transitioning from an LLC to a C-Corp in Texas, which facilitated greater access to capital markets and enhanced financial governance and reporting frameworks.
Retail market entry and distribution posed significant hurdles, as PPM Toys sought to secure agreements with major retailers such as Walmart, Target, and Toys R Us/Macy’s. The company focused on optimizing its supply chain logistics and establishing e-commerce channels to enhance its direct-to-consumer reach in the U.S. market. This required integrating digital marketing strategies and data-driven inventory management systems to ensure efficient operations and market penetration.
Stakeholder and investment collaboration played a key role in the expansion strategy. PPM Toys needed to solidify licensing agreements with Hasbro, Warner Brothers, and Peanuts brands while simultaneously engaging investors for additional growth capital. To support working capital and supplier commitments, Berkshire Hills Capital structured multiple credit lines through ExpoCredit LLC, ensuring financial flexibility and stability.
Advisory Approach & Strategic Execution
The M&A and pre-acquisition advisory process involved comprehensive financial, tax, and legal due diligence to assess the viability of the acquisition by Starfleet Innotech. Berkshire Hills Capital advised on valuation, financial modeling, and strategic restructuring to optimize investment returns and long-term sustainability. The structured equity financing deal totaled $5 million, with Starfleet acquiring 85% ownership of PPM Toys while ensuring Carlos Iga Saade retained a 15% non-dilutable stake.
Liquidity and credit structuring played an integral role in maintaining financial stability during the expansion. Berkshire Hills Capital, under the leadership of Simon Sandoval, structured multiple lines of credit through ExpoCredit LLC, offering PPM Toys an 80% upfront invoice advance, factoring agreements to enhance liquidity, and a 5% cash reserve to mitigate financial risk. These mechanisms ensured that supplier payments and operational expenses were adequately funded.
Retail expansion and supply chain optimization were central to PPM Toys’ growth strategy. The company entered into negotiations with Walmart, Amazon, and specialty toy retailers, securing distribution agreements that provided a foothold in the North American market. Supply chain efficiencies were enhanced through nearshoring strategies, reducing reliance on China-based manufacturing and leveraging regional production capabilities to streamline costs and inventory management.
E-commerce and digital transformation initiatives positioned PPM Toys for sustainable growth in the evolving toy market. The company launched a direct-to-consumer sales model through Amazon, Walmart.com, and its independent website, supported by a multi-channel digital marketing strategy. By utilizing influencer partnerships, targeted advertising, and AI-driven customer analytics, PPM Toys was able to drive consumer engagement and optimize online sales performance.
The integration of blockchain technology and NFT collectibles represented a key innovation in PPM Toys’ market expansion strategy. The company developed an NFT marketplace targeting toy collectors, forging partnerships with major toy brands to tokenize digital assets and authenticate collectible toys through blockchain technology. This initiative enabled PPM Toys to capitalize on emerging digital trends and diversify its revenue streams beyond traditional toy sales.
Financial Breakdown & Investment Gaps
Pre-Acquisition Financials (USD Converted at 19.50 MXN/USD)
Investment & Capital Allocation
Results & Outcomes
Financial Impact
Market Expansion
Digital Growth & Technology Innovation
Regulatory & Compliance Success
PPM Toys’ expansion into the U.S. market was executed through a well-structured financial and strategic advisory process, led by Berkshire Hills Capital. The successful acquisition by Starfleet Innotech provided the company with critical growth capital, while its retail and digital strategies positioned it for long-term market success.
The integration of e-commerce, blockchain-based collectibles, and AI-driven consumer analytics allowed PPM Toys to differentiate itself in a highly competitive industry. Through strategic licensing, financial structuring, and operational realignment, PPM Toys is now positioned as a significant player in the North American toy market.
Partnering with Berkshire Hills Capital has been an excellent experience. We can now concentrate on developing and managing our projects since BHC not only aggregates the operating funds we require from their capital sources but also provides ongoing management of existing investors.
BHC has been impactful in helping us to raise awareness for our listed company clients and partners and source additional opportunities and capital. They are the reason we opened an Asia operation in 2017 and we look forward to working with them in the future.
Partnering with Berkshire Hills Capital lead to closing our largest deal in 2022, a 130mm USD spa and hotel expansion, working through the difficulties of due diligence during the tail end of the pandemic until closed.
We are happy to partner with BHC once again as we expand our reach into Latin America and Southeast Asia. Their network of family office partnerships and HNW’s is especially strong in these regions and indispensable to our aim to increase AUM over the next two years.
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