Key Details:
- Client: UK national and UK resident
- Net Worth: Approximately £5 million
- Investment Portfolio: Approximately £2 million in marketable securities
- Funding Requirement: Approximately £500,000 for a UK residential property purchase
- Solution: Non-recourse Lombard-style facility secured against a diversified investment portfolio
The client was a UK national and UK resident with an established personal balance sheet and a diversified investment portfolio. Total net worth was approximately £5 million, with around £2 million held in marketable securities. The client wished to utilise existing investments more efficiently rather than liquidating assets to fund a property purchase.
The client required approximately £500,000 to support the purchase of a UK residential property. The objective was to access liquidity without selling investments or disrupting the client’s longer-term portfolio strategy. A non-recourse structure with flexibility around the term and repayment profile was preferred, subject to lender criteria.
Although the proposed borrowing was relatively straightforward from a structural perspective, the loan size was below the minimum thresholds typically accepted by some private banks offering Lombard-style facilities. The transaction therefore required a specialist lender with appetite for the proposed facility size and the client’s wider financial profile.
Enness leveraged its private banking network to identify a lender willing to consider a non-recourse Lombard-style facility secured against a diversified investment portfolio. Enness presented the client’s overall financial position to the lender, enabling the application to be assessed in the context of the wider balance sheet rather than solely against minimum facility thresholds.
The proposed structure provided the client with access to liquidity without requiring the underlying investments to be sold. The facility also allowed the client to retain their existing portfolio positioning, subject to the lender’s security requirements, ongoing collateral coverage and the agreed terms of the facility.
Subject to individual circumstances, lender approval, asset suitability and prevailing market conditions, securities-backed facilities can provide an alternative source of liquidity for investors seeking to access capital without immediately liquidating investment holdings. In this case, the structure supported the client’s proposed property purchase while preserving their broader investment position.
This case illustrates how specialist securities-backed lending can provide alternative financing solutions for clients with substantial investment portfolios, particularly where the required facility falls outside the typical thresholds of some private banks. Each transaction is assessed individually, with available leverage and terms dependent on the underlying assets, market conditions, lender criteria and the borrower’s circumstances.
Important Information
Enness does not give advice on Securities-Backed Lending or investments; lender introductions are unregulated. This case study is provided for information and illustrative purposes only and should not be construed as financial, legal, tax or investment advice, or as an invitation to buy or sell securities. Clients should seek independent professional advice before entering into any financing arrangement.
Risk Warning
The value of investments can fall as well as rise, and you may receive back less than your original investment. Where borrowing is secured against investments, a fall in the value of the underlying assets may result in additional collateral requirements, margin calls or the sale of pledged assets, depending on 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. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, asset suitability, valuation, market conditions, jurisdiction and lender criteria. Loan amounts, lending structures, pricing and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
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.
