When founder Taimour Zaman of AltFunds Global launched the advisory firm, he wasn’t looking to tweak existing financial systems, he was aiming to transform them. Working with sovereign institutions across Europe, the Middle East, and Asia, his mission was clear: unlock capital faster, smarter, and with less reliance on traditional debt.
“I started AltFunds Global because I saw a challenge with traditional sources of capital – banks, private equity, etc,” he says. “They were sitting on valuable assets, land, carbon credits, infrastructure revenue but couldn’t access liquidity fast enough to make meaningful change. Traditional capital models are too slow, too risk-averse, and in many cases, too rigid to adapt to the pace of today’s geopolitical, climate, and technological disruptions.”
From that diagnosis came a thesis: sovereign financing needs a new toolkit. And increasingly, sovereigns are listening.
He adds: “Across regions, I’ve noticed a common pattern: the desire for debt-light capital models. In the Middle East, sovereigns are turning to carbon-backed instruments to meet both climate and commercial goals. In Asia, especially Singapore and South Korea, there’s growing experimentation with tokenised cash flows and digital sovereign bonds. And in Europe, the appetite is growing for structured liquidity tools that can bridge political timelines with infrastructure urgency.”
The Global Sovereign Shift
Across the Middle East, sovereign wealth funds and government entities are leaning into carbon-backed instruments that align with climate commitments without triggering public debt ceilings.
Zaman points out, “UAE and Saudi Arabia have launched sovereign climate funds and development banks that don’t wait on multilateral coordination, they move.”
In Asia, countries like Singapore and South Korea are at the forefront of digital asset innovation, exploring tokenised sovereign bonds, programmable finance, and blockchain-backed infrastructure funding.
“From Asia, particularly Singapore, the lesson is on governance-led innovation. Singapore has clear digital asset rules, tokenisation pilots, and programmable finance experiments underway, all with government backing.,” he says.
Europe, by contrast, is playing catch-up, still reliant on rigid financial systems shaped by centralised bureaucracy and cautious regulatory frameworks.
Europe’s Sovereign Capital Bottleneck
Describing Europe’s sovereign capital ecosystem as “slow, restrictive, and politically encumbered,” the founder points to three key structural barriers:
- Overregulation: Basel IV constraints make banks overly conservative, even when sovereign guarantees are involved.
- Fragmented governance: Each EU member state has its own politics and rules, making cross-border capital projects painfully slow.
- Procurement complexity: Many sovereign infrastructure projects are delayed not because of funding gaps, but because of procurement bureaucracy.
The Rise of Structured Liquidity
To bypass these constraints, AltFunds Global advocates for what it calls a “structured liquidity toolkit.” At its core is the monetisation of Standby Letters of Credit (SBLCs).
“In sovereign infrastructure, this tool becomes powerful when a government-owned utility or agency say, a water authority – issues an SBLC from a top-rated bank. That SBLC can then be monetised, meaning it’s converted into liquid capital for project use – without booking new public debt.”
This approach is already in motion.
Several Eastern European transit projects have reportedly used SBLC-backed bridge financing to meet critical timelines.
“Why now? Because rating agencies penalise overt debt issuance, and public debt ceilings are politically toxic. SBLC-backed capital is off-balance-sheet, discrete, and can often be deployed in weeks, not years.”
And while critics raise concerns about transparency and risk, Zaman is quick to clarify: “These instruments are new, yes. But many are being structured with third-party verification, independent trustees, and regulatory sandbox frameworks already in place (see the EU’s DLT Pilot Regime). Transparency comes from architecture, not intention.”
Proof Over Promises: Carbon-Linked Securities
AltFunds is also championing the next evolution of ESG finance: carbon-linked securities. Unlike traditional green bonds, which raise funds based on intended use, these newer instruments are tied to verified emissions reductions or carbon credit performance.
“This difference matters. Investors want proof, not promises.”
As ESG scepticism rises and regulatory scrutiny tightens, performance-based climate finance is gaining momentum.
He says, “Green bonds raise capital based on intended use, usually a promise to fund sustainable projects. Carbon-linked securities, on the other hand, are tied to actual verified emission reductions or measurable carbon credit performance.”
Why This Moment Matters
With public debt reaching politically and fiscally sensitive levels across Europe and multilateral funding facing chronic delays, governments are increasingly open to alternative capital pathways.
Zaman shares: “Governments will always need traditional debt markets, but when time-sensitive projects can’t wait for bond market windows or multilateral approvals, structured liquidity will fill the gap.”
By 2030, the founder expects these tools to make up 10-15% of sovereign infrastructure finance, particularly in emerging markets and sectors like climate adaptation, digital infrastructure, and energy transition.
Regulatory Maturity: Europe’s Missing Link
To truly scale, Europe needs a coherent policy environment for structured liquidity markets.
According to Zaman, it means doing three things fast:
- Define eligibility – Which sovereign entities can issue these instruments? Under what caps?
- Mandate audits – Independent ESG or financial audits tied to every instrument class.
- Standardise risk frameworks – Just like credit ratings evolved, these tools need their own risk matrices.
Zaman is clear that these instruments deserve legitimacy, not limbo.
He adds: “If these instruments are helping bridge a €1trn funding gap in Europe by 2030, they deserve a proper regulatory lane (European Commission estimates, 2024).”
Financing Europe’s Trilemma
The Zaman explains the assembly on how structured liquidity could help solve Europe’s threefold challenge: Energy independence, climate resilience, and industrial retooling.
Energy: “Tokenised LNG storage revenues can bring forward capital for grid upgrades.”
Climate: “Carbon-linked securities fund projects based on verified climate action.”
Industry: “SBLC-backed loans can fund equipment upgrades without breaching debt ceilings.”
“These tools enable modular financing, meaning capital can flow faster to where it’s most needed without waiting for EU-wide approval processes,” he adds.
A Decentralised Future
Ultimately, AltFunds Global sees a new era of sovereign finance, more decentralised, data-driven, and programmable.
He states: “Capital won’t just come from Frankfurt, Brussels, or Paris, it’ll come from blockchain-based marketplaces, carbon offset exchanges, and infrastructure tokenisation hubs.”
Lessons from the Middle East and Asia
So where should Europe look for inspiration?
Zaman concludes: “From the Middle East, Europe can learn the value of flexibility and sovereign agility. UAE and Saudi Arabia have launched sovereign climate funds and development banks that don’t wait on multilateral coordination, they move.”
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