- Introducer: International law firm
- Client: European National, Canadian Resident
- Security: Publicly listed shares valued at approximately C$14.2 million
- Loan: 63% LTV over 24 months
An international law firm approached Enness on behalf of a high-net-worth client who needed to raise finance against a portfolio of publicly listed shares. The client was looking to create liquidity that could be placed with a private bank as assets under management (AUM), helping to unlock the high-value mortgage required to purchase a European residential property.
The client was a European national resident in Canada and had co-founded and subsequently listed two businesses, one in the United States and one in Canada. Their shares were worth approximately C$14.2 million, but the fact that they were listed on a relatively small stock exchange made the financing more complex.
The client already had a potential mortgage solution in mind, but access to the required lending was dependent on establishing an appropriate AUM relationship with the private bank. The law firm wanted to help their client overcome this hurdle while adding value to the wider relationship, so they approached Enness to explore what could be achieved against the shareholding.
Enness assessed the securities and the client’s wider circumstances before approaching lenders with the specialist appetite required for the transaction. The relatively small exchange on which the shares were listed meant that the lender needed to be comfortable with the nature and liquidity of the underlying security.
We successfully sourced a lender willing to provide a 63% LTV facility over 24 months against the shares. This created the liquidity required for the client to establish the AUM relationship and progress towards the intended property purchase.
The solution also delivered an important outcome for the introducing law firm. By working with Enness, the firm was able to present its client with a practical financing solution that supported the client’s wider objectives while strengthening the long-term professional relationship.
This case demonstrates how securities-backed lending can be structured around less conventional listed holdings, particularly where a borrower needs to create liquidity without immediately selling their investments. Enness can work with professional advisers and their clients to explore specialist lending structures and private bank mortgage solutions where appropriate.
Risk Warning:
Securities-backed lending carries risks. The value of securities can fluctuate, and if the value of the collateral falls, the lender may require additional collateral or repayment. Failure to meet the terms of the facility could result in the loss of some or all of the pledged assets.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, collateral suitability and lender criteria. Enness does not provide advice on investments or securities-backed lending, and lender introductions in this area are unregulated. Terms and availability will vary depending on individual circumstances.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
