In this case, we were approached by a leading US-based accounting firm. The accounting firm work exclusively with high-net-worth business owners and entrepreneurs – predominantly in the San Francisco and Los Angeles regions.
In this case, the client – the co-founder of a successful, US-listed tech firm – wanted to create liquidity by raising equity against their single stock portfolio to diversify investments and revenue streams.
The accountant was in favour of the diversification, but despite the fact that the client’s company had a market cap of around $3 billion, the accountant had struggled to find a lender that could lend against a single line of stock, as was required in this case.
Both the accountant and the client had approached some lenders directly to try and secure a securities-backed loan, but been offered very low LTV or turned down for lending on the basis of not having a more varied portfolio of securities to pledge as security.
The accounting firm reached out to us to see if we could help the client to arrange the loan. We were able to deliver a solution to the accountant that allowed the client to borrow £8,156,000. The LTV was 25% LTV, which was more than ample for the client’s diversification strategy and was significantly higher than the client had been offered by other lenders. The loan had a term of 10 years with a fixed interest rate of 5.175%.
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