Case study:  Flexible lending for investment opportunities

Complex situations require bespoke lending solutions

We are used to handling more ‘unusual’ requests from our clients. This case study emphasises our ability to understand and support more complex situations, such as the capability to lend in different currencies.

Background

Two offshore companies (owned by an experienced investor supported by a family office).

Loan Type

A revolving Lombard overdraft facility (where the loan is secured against an investment portfolio).

Security

Brown Shipley investment portfolios with a 70% concentration to a single listed European equity (ultimately owned by a number of their wider family members).

Loan Size

£30 million.

The situation

An international investor of Brown Shipley with complex needs holds a large interest in a listed European equity. Because of this, their personal wealth is heavily concentrated and correlated to  the ‘family owned’ company in question. They are opportunistic investors who were looking to  utilise leverage to support further growth of their investments and overall wealth.

Considerations and challenges — understanding the company’s investment fundamentals and collaborating across multiple countries

Understanding the investment fundamentals of the company with a particular focus upon its liquidity and volatility.
Utilising solicitors in the respective countries to register our charge and also provide legal opinions on the borrowing companies.
Understanding and navigating through any restrictions in pledging the stock.
Working within stringent time-frames to allow the investor to take advantage of time sensitive investment opportunities.

How we helped

We were able to work with and utilise the expertise of our parent, Quintet, to support this investor. Ultimately applying a lending value to their main holding has allowed them to take advantage of further market opportunities while remaining invested. They now also have the ability to diversify away from the position of concentration. Overall, they have benefited from this facility by enhancing their investment flexibility via lending. They continue to work with their Brown Shipley Client Advisor team as they take advantage of market opportunities to diversify their wealth.

Could a flexible lending solution increase your investment opportunities?

At Brown Shipley, we’re able to offer swift, creative lending options to help you make the most of your opportunities.

Get in touch to find out more.

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Tax planning is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority. All lending is subject to qualifying criteria/Brown Shipley reserves the right to decline any loan application at  its sole discretion.
Clients should consult their tax planning specialist.
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