- Client: UK-based individual
- Share Value: Circa £2 million
- Loan Amount: Circa £500,000
- Loan to Value: Approximately 60%
Enness was approached by a high-net-worth individual seeking to raise capital against a concentrated listed equity position. The client wanted to unlock liquidity while retaining ownership of the shares, with funds intended to support broader liquidity requirements. Maintaining long-term exposure to the underlying investment remained a key priority, as the client wished to avoid selling the asset and potentially missing future market upside.
The transaction presented several complexities. The primary challenge was identifying a lender willing to provide funding against a concentrated single-stock portfolio at a relatively high loan-to-value ratio. Many lenders prefer diversified portfolios as collateral to help mitigate volatility risk associated with individual equity positions.
In addition, the client required the facility to be structured in a way that aligned with relevant UK tax considerations. This required sourcing a lender capable of offering a bespoke contractual structure suited to the client’s specific requirements while also meeting regulatory and structuring considerations.
Leveraging established relationships with specialist lenders in the securities-backed lending market, Enness identified a suitable provider able to support the transaction. The solution delivered a flexible line of credit secured against the client’s shareholding.
The facility allowed borrowing of up to approximately 65% loan-to-value, subject to facility terms and lender approval. Importantly, the structure enabled the client to pay interest only on the portion of the facility drawn down, providing flexibility and efficient liquidity management.
This bespoke structure enabled the client to access liquidity while maintaining exposure to the underlying investment. By working with specialist lenders comfortable with concentrated equity positions, Enness was able to structure a financing solution aligned with both the client’s liquidity objectives and wider structuring requirements.
Regulatory Notice:
Depending on the structure, securities-backed lending and related financing solutions may fall outside FCA regulation. Regulatory treatment will depend on the borrower’s circumstances, borrowing purpose, and assets used as security.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, or tax advice. Finance is subject to status, underwriting, asset suitability, and lender criteria. Borrowing against property and other assets carries risk, and failure to meet repayment obligations may put secured assets, including property, at risk.
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.
