Client: UK national and UK resident
Challenge: Concentrated single-stock portfolio requiring specialist lender appetite
Loan Amount: £300k Lombard loan facility at circa 60% LTV
A UK-based investor approached Enness seeking to release liquidity against a concentrated listed equity portfolio valued at approximately £2M. The portfolio consisted primarily of a single high-growth technology stock, creating a structure that many lenders would typically consider higher risk from a securities-backed lending perspective. The client’s objective was to unlock £300k in liquidity to support personal expenditure without disrupting their long-term investment strategy or selling shares ahead of potential future value growth.
The primary challenge in this case related to the concentrated nature of the portfolio. Many lenders prefer diversified securities portfolios when structuring Lombard lending facilities, as concentration risk can affect margin thresholds and borrowing availability. As a result, identifying a lender willing to assess the position based on the underlying strength and liquidity characteristics of the listed equity holding, rather than applying standard diversification requirements, was essential to delivering a workable solution.
Enness introduced the client to a specialist private banking lender experienced in structuring Lombard facilities secured against concentrated listed equity positions. A £300k line of credit facility was arranged at approximately 60% LTV, structured on an indefinite-term basis with pricing agreed at circa 2% above base rate. The facility provided flexible access to liquidity while allowing the client to retain full exposure to the underlying investment and avoid unnecessary portfolio restructuring.
This case demonstrates how specialist securities-backed lending solutions can support investors with concentrated listed equity holdings where mainstream lenders may apply stricter diversification requirements. By leveraging private banking relationships and structuring a flexible Lombard facility aligned with the client’s objectives, Enness enabled access to liquidity while preserving long-term investment positioning.
