- Client: UK-based individual
- Share Value: Circa £2 million
- Loan Amount: Circa £500,000
- Loan to Value: Approximately 60%
Enness was approached by a high-net-worth individual seeking to raise capital against a concentrated shareholding in a listed equity position. The client wished to unlock liquidity while retaining ownership of the shares, with the funds intended to support various personal expenses. Maintaining the long-term investment position in the stock was an important priority, as the client wanted to avoid selling the asset and potentially missing future upside.
The primary challenge in this case was identifying a lender willing to provide funding against a concentrated single-stock portfolio at a higherloan-to-value ratio. Many lenders prefer diversified portfolios as collateral, which helps mitigate volatility risk associated with individual equities. In addition, the client required the facility to be structured in a way that complied with relevant UK tax considerations. This meant sourcing a lender capable of offering a bespoke contractual structure that would align with UK regulatory and tax requirements while still delivering competitive terms.
Acting quickly, Enness leveraged its relationships with specialist lenders in the securities-backed lending market to identify a suitable provider. The solution delivered a flexible line of credit secured against the shareholding. The facility allowed borrowing of up to approximately 65% loan-to-value subject to facility terms. Importantly, the structure enabled the client to pay interest only on the portion of the loan that was drawn down, offering greater flexibility and cost efficiency.
This bespoke structure allowed the client to access liquidity while maintaining exposure to the underlying investment. By leveraging specialist lenders comfortable with concentrated equity positions, Enness was able to deliver a tailored financing solution that met both the client’s liquidity needs and regulatory considerations.
