- Client: US-based UHNWI representing a senior shareholder group
- Share Value: Circa £50M
- Loan Amount: Circa £7.5M
- Loan to Value: Approximately 15%
Enness was approached by an ultra-high-net-worth individual representing a consortium of senior shareholders who run a circa $5 billion private equity-backed company in the United States. The client sought to unlock liquidity against their shareholding while maintaining ownership and long-term strategic control of the business.
The critical challenge was identifying a lender willing to provide non-recourse funding secured purely against the client's shares, without requiring additional collateral or portfolio diversification. The middle-market nature of the transaction and the requested loan size further limited the pool of potential lenders, as many institutions typically require larger facilities or broader asset security.
Acting quickly, Enness identified a specialist private credit lender capable of structuring the required facility. The solution delivered a day-one draw loan, structured at around 15% loan-to-value over a five-year term with an arrangement fee of approximately 3%. Leveraging Enness' relationships within the private credit market allowed the funding to be arranged while meeting the client's liquidity requirements without requiring a sale of the underlying shares.
ENNESS DOES NOT GIVE ADVICE ON SECURITIES BACKED LENDING OR INVESTMENTS; AND LENDER INTRODUCTIONS ARE UNREGULATED.
THE VALUE OF PRIVATE COMPANY SHARES CAN FALL AS WELL AS RISE. BORROWING AGAINST SHARES MAY INVOLVE ADDITIONAL COLLATERAL REQUIREMENTS OR THE SALE OF SECURED ASSETS IF REPAYMENT OBLIGATIONS ARE NOT MET.
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.
