The due diligence

The discipline behind every deal

Legal · Notarial · KYC · AML

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Preservation of capital before the pursuit of yield.

The name is a nod to Dr John Watson: the steady analyst who grounds bold ideas in evidence. Every financing we arrange is structured around secured collateral, a conservative reading of value, and a long view of the relationship.

Invest or finance

DUE DILIGENCE 9 STAGES ON EVERY DEAL

Watson
doctrine

First-rank securityRegistered first

A first-rank mortgage over the asset is registered as a condition of the investors' funding, ranking them ahead of other creditors.

Personal guaranteesBeyond the asset

When applicable, the sponsor stands personally behind the facility, so recourse extends beyond the asset itself.

Bank guaranteeAdditional layer

Where a deal calls for it, a bank guarantee from a named institution sits behind the facility, adding a further layer between investor capital and any loss.

Due diligenceNine steps

A published nine-stage pipeline runs on every facility, from first assessment through to ongoing monitoring.

Exit strategyIdentified first

Every facility is structured around a clear exit, identified before any terms are issued.

CollateralAsset-backed

Each loan is secured against real property, so repayment never rests on cash flow alone.

Term profileShort to mid

Facilities run short to mid-term, keeping capital working and turning over rather than locked away.

Maximum LTVUp to 75%

Loans are sized against a conservative view of value, leaving an equity cushion beneath the investors' claim.

Internal reviewEvery file

No file reaches an investor without passing Watson AM's internal review. Each investor then makes its own assessment.

Swiss companyAG structure

Watson AM AG is a Swiss company, registered in Basel under UID CHE-368.490.535.

Click any line for explanations.

How a deal is checked.

Scrutiny

01Initial project assessment. Alignment with risk tolerance and a business model review.
02Legal due diligence. Swiss and local law firms vet the borrower and the structure.
03Conditions Precedent check. Verifying the CP list: the conditions that must be met before investors fund.

Structure

04Financial and collateral review. The numbers and the asset behind them.
05Security package design. Liens, pledges, and guarantees, set per deal.
06Notarial registration. Security registered as a condition of the investors' funding.

Stewardship

07Compliance and regulatory review. AML and KYC against Swiss, European, and local standards.
08Final approval and documentation. Investor sign-off and the paper trail.
09Ongoing monitoring. Regular borrower check-ins and clear enforcement triggers.

Main jurisdictions

Switzerland Germany Austria Denmark Norway Sweden Finland United Kingdom Spain Italy France Switzerland Germany Austria Denmark Norway Sweden Finland United Kingdom Spain Italy France

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The questions we ask ourselves.

Can we understand the asset?

We take on files where the collateral can be valued, registered and, if needed, claimed.

Can the sponsor execute?

We look for a proven track record and a team that has built this before.

Does it clear compliance?

KYC and AML on every counterparty, to Swiss, European and local standards.

Is the leverage right?

Sized to a conservative value and capped at 75% loan-to-value, with equity beneath the investors.

Can we protect the capital?

Layered security, set per deal: first-rank mortgage, guarantees and covenants behind it.

Can we see the way out?

No file goes to investors without a clear exit, identified before terms are issued.

Diligence questions.

Asked most often once people have read the nine steps. For anything else, write to us.

Who designs the security package?

Watson AM designs it in step five, file by file. Depending on the deal, it combines mortgages, pledges and guarantees, and it's agreed with the borrower before indicative terms are issued. Each investor then judges the package for itself.

Why is loan-to-value capped at 75%?

The cap keeps an equity cushion of at least 25% beneath the investors' claim, so a fall in the property's value is absorbed first by the sponsor's equity. The facility is sized against a conservative view of value, and across funded projects to date the median LTV is 65%.

What do the KYC and AML checks cover?

Know-your-customer and anti-money-laundering checks run on every counterparty, borrowers and investors alike. They confirm who the parties are, who ultimately owns them and where the money comes from, against Swiss, European and local standards.

Does Watson AM's review replace the investors' own?

No. Our internal review decides whether a file goes to investors at all; it doesn't decide whether they fund. Each investor reads the prepared file, runs its own assessment and agrees or declines, and the final terms are settled with them. What the nine steps change is the starting point: that assessment begins from a file already checked and documented.

What happens once the file is ready?

With indicative terms issued, we present the file to the investors in our network it suits, drawn from more than 120 investors and capital partners. Each one reads the file and decides whether to go ahead, and the final terms are settled with those who do. From then on we coordinate between the borrower, the investors and their advisers through documentation and closing.