Client: UHNW technology entrepreneur holding a diversified portfolio of listed US technology stocks
Deal Value: $75,000,000
The Challenge
A US based technology entrepreneur held a diversified portfolio of listed technology stocks accumulated over two decades of successful exits and investments. Following a period of significant market volatility the client required $75,000,000 in liquidity to recapitalise a private venture and meet co-investment commitments across three funds. Selling into a volatile market would have crystallised losses and disrupted carefully planned portfolio rebalancing. Their existing prime brokerage relationship was unable to provide lending at the required scale against the mixed portfolio composition.
The Solution
We approached a tier one international securities lender with deep experience in large scale technology portfolio lending. Working closely with the client's US legal counsel and wealth manager we structured a multi-stock lending facility across 12 listed positions with individual loan to value ratios tailored to each stock's liquidity profile and volatility characteristics. The facility included flexible drawdown provisions allowing the client to access funds in tranches aligned with their investment commitments.
The Outcome
The client successfully drew down $75,000,000 across two tranches within 20 working days. All three fund co-investment commitments were met on time and the private venture was fully recapitalised. The portfolio remained intact throughout and has since appreciated significantly in value.
The sophistication they brought to structuring this facility was exceptional. They navigated a complex multi-stock portfolio with precision and delivered exactly what we needed.
— Client — Technology Entrepreneur, New York