- Client: UK resident
- Challenge: Unlocking liquidity from a concentrated holding in a listed blue-chip company without selling the shares
- Facility: Circa £600,000 Lombard loan
- Portfolio Value: Circa £1 million
- Loan-to-Value: Up to 60%
A UK resident approached Enness Global seeking to unlock liquidity from a significant holding in a single listed blue-chip company. The client had benefited from the company's recent growth and wanted to access capital without selling the shares, crystallising a potential capital gains tax liability or reducing exposure, while they believed the investment still had further long-term potential.
Although the client had substantial equity available, raising finance against a concentrated portfolio can be significantly more challenging than borrowing against a diversified investment portfolio. Many lenders apply stricter lending criteria or are unwilling to accept a single-line equity position because of the additional concentration risk associated with one underlying asset. Finding a lender with the appetite, flexibility and expertise to support this type of transaction required access to specialist providers rather than the mainstream market.
Enness approached lenders experienced in securities-backed lending and successfully negotiated competitive indicative terms with a specialist investment provider. The proposed structure allowed the client to retain ownership of the underlying shares while using them as security for a Lombard lending facility. Indicative terms included a facility of circa £600,000, representing approximately 60% loan-to-value, with competitive pricing and no custody, management or arrangement fees, providing an efficient source of liquidity while allowing the client to remain invested.
This case highlights how specialist Lombard lending can provide an alternative to selling valuable investments when capital is required. Through access to an extensive network of private banks and specialist lenders, Enness can identify solutions for clients whose borrowing requirements fall outside conventional lending criteria, helping them unlock liquidity while preserving their longer-term investment strategies.
Disclaimer
This case study is provided for illustrative purposes only and does not constitute financial, tax, legal or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Loan amounts, loan-to-value ratios, pricing and lending structures are indicative only and subject to lender assessment, security valuation, market conditions and individual circumstances. Securities-backed lending carries risks, including the potential for additional collateral requirements or the sale of pledged assets if their value falls. Enness Global acts as a 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.
