Q&A with Alistair Drage, Head of Commercial Structuring

In this Q&A we find out more about both Alistair and how he goes about his job.

Briefly tell me about your working experience

I have over 30 years’ experience in the asset and structured finance markets. I have financed over £10 billion of assets in that time; advised in five different continents, and utilised finance from over ten different jurisdictions.

In just over 33 years, I have worked as a provider of capital expenditure finance both as principle in UK clearing banks, boutique investment banks, international investment banks and captive operating lessors, and as a self-employed advisor and arranger to the aviation, shipping and oil and gas markets. 

In that time, I have financed a diverse range of assets, including smart meters, IT equipment, standby energy assets, solar energy assets, wind energy assets, light commercial vehicles, heavy goods vehicles, rolling stock, aircraft engines, narrow and wide body aircraft, offshore energy assets (supply vessels, drill ships, seismic survey vessels and floating production vessels).

What does being Head of Commercial Structuring involve?

I am responsible for evaluating anything that falls outside of ‘standard’ for the Commercial division of Close Brothers. Standard is our core sectors, where assets can be financed on standard terms utilising security from a combination of the asset and the borrower covenant.

Where we have non-standard assets being deployed in unusual or new markets, or where the borrower does not have the desired strength in the balance sheet, I will look at alternative security that can be derived either from other parts of the borrower’s business or from the utilisation of the asset being financed.

It is my job to ensure we are always suitably secured despite its sometimes-unusual nature and source, and to ensure that we can access that security, should the time come. 

What is it about your role you find most interesting/motivating?

As I only get involved on the non-standard opportunities, I am always looking for something else to leverage. I love to see the whole landscape: who’s supplying the asset? How long will it take to make? Who’s going to use it and for how long? Who else is doing this? What is the commercial rationale for this asset? How is it different from the rest of the market? Are there alternative / secondary markets? What happens if the wheels stop - how do we get repaid?

Every deal is different, every day you get to see something different or view something familiar in a new way. It is that continuous rediscovery that I love, finding a way to do something that was outside of the ordinary.

Without mentioning names, have there been any deals you’ve been involved with that stand out?

I have been fortunate in my career to work on deals across the world using many different tax regimes. I was always excited, unlike my family, when I saw planes on the airport tarmac that I had financed or driving on the motorway to see vehicles on leases you have completed, or attending the christening of a new vessel that I had advised on the financing.

I love breaking new ground and doing something a little differently, and surprising a customer with just what is possible. When I deliver a deal that others said couldn’t be done, those are the ones that really stand out.

You’ve been with Close Brothers for over a year now. What have been the highlights?

As I say, I love breaking new ground, but I also love taking people on a journey of discovery as to the art-of-the possible. Over the last year I have been working closely with a couple of teams, in particular the Brewery Rentals and ESG teams.

These are very different markets with very different opportunities; the Brewery Rentals team have a great opportunity to fund a new type of keg that will lend itself to a very structured solution of deployment to a very well-established marketplace.

The ESG team is addressing the UK government- promoted assets and industries that will push the UK to net zero; these are new industries with new assets.

The Brewery Rentals opportunity takes a structured look at the contractual undertakings, and the ESG opportunities look to structure the security arising from both the asset and the market. 

For me, the highlight is that in Close Brothers I have found colleagues and teams that show a can-do attitude asking, ‘how do we do that?’.