Crypto-Backed Loan for a UK National

Key Details:

• Client: UK national with significant private company equity
• Net Worth: Approximately £20 million
• Requirement: Circa £2 million liquidity for a property purchase
• Challenge: Private company shares subject to contractual restrictions and limited conventional security options
• Solution: Bespoke equity-backed facility structured around a future liquidity event

The client was a UK national with a net worth of approximately £20 million, holding significant equity in a high-value private company. The client wished to preserve ownership of the shares while accessing liquidity to support a property purchase.

The client required approximately £2 million of funding, with the private company shares forming the basis of the proposed security. The objective was to access capital without an immediate sale of the shares, while ensuring that the proposed financing structure took account of the company’s shareholding restrictions and the illiquid nature of the underlying asset.

The shares were subject to strict contractual restrictions, limiting the lender’s ability to take conventional security directly over the equity. The client was also keen to avoid an immediate disposal of the shares in order to maintain their long-term investment position. The lender therefore required sufficient visibility over the underlying asset and an appropriate structure to manage the associated security and liquidity considerations.

Enness Global structured a bespoke forward-contract-style facility designed around the private company shares and a future liquidity event. The structure provided a defined framework for repayment and a pre-agreed cost of capital, subject to lender approval and the final terms of the facility. This enabled the lender to assess the proposed transaction while allowing the client to retain ownership of the underlying shares.

Subject to individual circumstances and lender requirements, specialist equity-backed facilities can provide alternative sources of liquidity where conventional financing routes may not be suitable. In this case, the proposed structure supported the client’s planned property purchase while maintaining exposure to the underlying private company equity.

This case demonstrates how specialist lending can be used to explore liquidity solutions against complex and illiquid assets, particularly where contractual restrictions or ownership considerations make conventional secured lending difficult.

Important Information

Enness Global does not provide advice or recommendations on investments or Securities-Backed Lending, and lender introductions are unregulated. Specialist equity-backed lending may fall outside UK FCA regulation depending on the structure and circumstances of the transaction. Clients should seek independent legal, tax and financial advice before entering into any arrangement.

Risk Warning

Private company shares can be illiquid and their value can fall as well as rise. Where borrowing is linked to or secured against investments or other assets, a fall in value or a change in the underlying asset may result in additional collateral requirements, partial repayment or the sale or transfer of pledged assets, subject to the terms of the facility. Failure to meet repayment obligations may result in the loss of secured assets.

Disclaimer

This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, asset suitability, valuation, jurisdiction and lender criteria. Loan amounts, pricing, lending structures and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.

This content is provided for information and illustrative purposes only and should not be construed as advice or a recommendation, nor as an invitation to buy or sell securities.