J.P. Morgan offers a variety of solutions to meet your escrow needs. Our global team of experts will work with you to determine the ideal escrow structure for your transaction.
Here are just some of the situations we support with escrow services:
- Mergers & Acquisitions
- Funds held to ensure compliance with representations and warranties or performance covenants.
- Capital Raising
- Funds held pending a successful capital call or other form of capital raising. Funds are not disbursed until all investors participate in the transaction. Particularly applicable for private equity funds, hedge funds and venture capital funds.
- Funds deposited in escrow pending appeal of a court judgment, distributions to class-action claim holders, or bankruptcy claim processing.
- Regulatory Requirements
- Funds held until compliance with regulatory requirements, such as obtaining licenses to do business or environmental clean-up.
- Construction/Project Finance
- Protects the investor or sponsor of a construction or infrastructure project. Upon completion of pre-defined milestones, escrowed funds are released to the appropriate party.
- Non-Credit Trade Facility
- Alternative to Standby and Trade Letters of Credit to ensure performance in trade or other financing arrangements.
- Cash Management
- A revenue stream passes through the escrow agent for subsequent disbursement. An escrow ensures that the parties to the agreement receive their documented share of the revenue stream.
- Counterparty Risk Mitigation
- Cash collateral deposited in escrow by counterparties to ensure counterparties will fulfill their promise to pay.