Key Details:
- Client: UK national and UK resident
- Challenge: Releasing liquidity against private company shares without selling equity or providing additional collateral
- Loan Amount: Circa $7.5 million facility
- Share Value: Circa £20 million
A UK national approached Enness Global seeking to raise capital against a significant shareholding in a private company expected to pursue a public listing within the coming years. The client required liquidity to fund a new business venture while retaining ownership of the shares and maintaining exposure to any future value created through a potential liquidity event.
The transaction presented several complexities. Lending against private company shares is significantly more specialist than borrowing against publicly listed securities, with a limited number of lenders willing to consider this type of collateral. The client also wished to avoid pledging additional assets, requiring a facility structured solely against the private shareholding. Identifying a lender comfortable with the company's profile and the proposed security structure was therefore essential.
Enness Global introduced the client to a specialist lender experienced in private share-backed lending. A circa $7.5 million facility was structured over a five-year term, with pricing and lending terms reflecting the characteristics of the underlying security. The structure also incorporated provisions to accommodate a future liquidity event, subject to the lender's terms and conditions.
This case demonstrates how specialist securities-backed lending solutions can provide liquidity for entrepreneurs and shareholders with substantial private company equity, allowing capital to be released without requiring an immediate sale of shares.
Disclaimer
This case study is provided for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, asset suitability and lender criteria. Loan amounts, lending structures and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
Regulatory Notice
Securities-backed lending and lending secured against private company shares may fall outside FCA regulation. Regulatory treatment depends on the structure of the transaction and the borrower's individual circumstances.
Risk Warning
Borrowing secured against investments carries risk. If the value of pledged assets falls, additional collateral or partial repayment may be required. Failure to meet repayment obligations could result in the sale or loss of the secured assets.
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.
