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 their shares while accessing liquidity to support a property purchase.
The client required a crypto-backed loan of around £2 million, using private company shares as the underlying asset. The objective was to access capital without selling the shares or triggering tax liabilities, while remaining compliant with the company’s shareholding restrictions.
The shares were subject to strict contractual restrictions, preventing a traditional lien or direct security arrangement. The client was keen to avoid a sale, both to maintain long-term investment exposure and to prevent crystallising tax liabilities. The lender required sufficient comfort and visibility over the asset, despite its illiquidity and the inability to take conventional security.
Enness structured a bespoke forward-contract-style facility, allowing the shares to underpin the loan in a compliant manner without breaching shareholding terms. The loan was structured to be repayable at a future liquidity event, with a pre-agreed cost of capital. This approach provided transparency and comfort for the lender while enabling the client to retain ownership and adhere to all contractual obligations.
Subject to individual circumstances and lender requirements, facilities of this nature have, in prior instances, progressed within commercially appropriate timeframes. In this case, the structure enabled the client to access liquidity to support the planned property purchase while maintaining exposure to the underlying asset. The solution illustrated how specialist crypto-backed lending can provide flexibility where traditional financing routes are not suitable.
Crypto Disclaimer:
Enness does not give crypto advice or recommendations and you should seek professional advice to discuss your personal circumstances and requirements.
Securities Backed Lending Disclaimer:
Enness does not give advice on Securities Backed Lending or investments; and lender introductions are unregulated.
This guide is for information and illustrative purposes only and nothing contained within should be construed as advice or a recommendation and is not an invitation to buy or sell securities.
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.
