- Client: US resident and national
- Net worth: $10m+
- Security: Shares in an internationally listed company with a market capitalisation of circa $440m
- Loan Amount: $4m
- LTV: 50%
- Term: 3 years, with a 24-month lock-in
- Interest Rate: 3.09% fixed
Enness was approached by an ultra-high-net-worth individual looking to raise liquidity against a substantial holding in an internationally listed company. The client, an entrepreneur with a net worth of more than $10 million, wanted to unlock capital from their single-stock position without selling the shares, allowing them to pursue additional investment opportunities while retaining exposure to the underlying investment.
The client’s wealth was predominantly held across real estate and shares listed on the Stock Exchange of Thailand. Given the concentration of wealth in a single listed holding, a conventional securities-backed facility was not necessarily the most straightforward solution. Enness therefore explored specialist single stock loan lenders that could accommodate the nature and value of the security.
A key consideration was the facility's structure. Rather than transferring beneficial ownership of the shares, the client opted for a pledge structure in which the stock was held with an independent third-party custodian. This provided a framework in which the shares remained protected throughout the term, while the lender received security over the holding. The structure also allowed the client to retain their economic interest in the shares, including dividends and voting rights.
Enness successfully sourced a non-recourse facility of $4 million, representing a 50% LTV against the shareholding. The loan was provided in a single tranche at a fixed interest rate of 3.09% over a three-year term, with a 24-month lock-in period. The structure gave the client access to significant liquidity without requiring them to dispose of their concentrated shareholding.
Single stock loans can provide a flexible way for entrepreneurs, business owners and high-net-worth individuals to access liquidity from concentrated shareholdings. Depending on the lender, the proceeds may be used to pursue new investments, acquire assets, fund a property purchase or diversify an existing investment portfolio.
Given the specialist nature of single-stock lending, lender appetite can vary significantly depending on the exchange, company, market capitalisation, share price volatility and proposed loan structure. Enness works with specialist lenders across this market to identify financing solutions that reflect the underlying security and the borrower’s objectives. To discuss your requirements, speak to a mortgage specialist.
Risk Warning:
Single-stock lending carries significant risks. The value of listed shares can fluctuate and may fall substantially, potentially resulting in a margin call or enforcement against the pledged securities. If the terms of the facility are not met, the lender may take action against the secured assets. Borrowers should carefully consider the risks of using investment assets as collateral before proceeding.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Enness does not give advice on Securities-Backed Lending or investments and lender introductions are unregulated. Finance is subject to status, underwriting, lender criteria and individual circumstances. Terms and availability will vary.
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.
