Pay master escrow agent
In paymaster escrow arrangement, an escrow agent is acting in accordance to the instruction from the instructing parties to perform a series of funds distributions over a period of time.
Generally, the funds distribution are guided by legal documents such as sales and purchase agreement where smaller buying parties may pool funds at the escrow agent against one large selling party or in the case of investment management agreements, funds from smaller investors maybe pooled at the escrow agent, to be channelled to a particular investment. Subsequently, when the investment generates returns, the escrow agent will facilitate funds distribution back to the investors.
How it works
Steps:
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Investment Manager / Sponsor originates the deal and signs escrow agreement with Escrow SG
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Investors fund the Escrow account.
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Escrow SG confirms funding.
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Investment Manager / Sponsor confirms instruction.
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Escrow agent releases funds to make investments (debt or equity).
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Escrow agent receives investment returns
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Escrow agent transfers investment returns to investors and management fees to Investment Manager / Sponsor