- Client: North American national resident in the United States
- Challenge: Required short-term liquidity against restricted private equity holdings without direct share security
- Loan Amount: $2M bridge facility at circa 40% LTV
A North American client resident in the United States approached Enness seeking short-term funding to support the acquisition of a European property. The client held a concentrated position in a high-profile private technology company with an estimated value of approximately $12M and required liquidity for a period of up to seven months while preserving their long-term investment exposure.
The transaction presented several specialist structuring challenges. The underlying private equity holding was subject to transfer restrictions and shareholder covenants, meaning the lender could not take a direct lien or traditional charge over the shares without breaching the terms of the shareholder agreement. In addition, many lenders active in this space typically seek participation rights or equity-linked upside structures as part of the financing arrangement, which the client was unwilling to provide. The client therefore required a lender capable of delivering short-term liquidity through a fixed-return structure without equity participation or intrusive security arrangements.
Enness introduced a specialist lender experienced in structured liquidity solutions against illiquid private assets. A $2M bridge facility was negotiated over a seven-month term at approximately 40% loan-to-value. The structure incorporated rolled-up interest, payable at maturity, allowing the client to preserve cash flow during the facility term while completing the European property acquisition. Importantly, the lender was comfortable structuring the transaction without taking a direct lien over the underlying private equity position, ensuring compliance with the shareholder restrictions attached to the asset.
This case demonstrates how specialist structured finance can unlock liquidity against illiquid private assets where traditional securities-backed lending is not viable. By aligning the facility with shareholder restrictions and the client’s broader investment strategy, Enness delivered a flexible short-term funding solution without requiring asset disposals or equity participation.
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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.
