Share-Backed Financing
Liquidity against listed equity holdings without a forced sale — letting founders, family offices, and principals unlock capital while retaining ownership, dividends, and upside exposure.
The Structure, Explained
Share-backed financing (also called securities-based lending or Lombard lending) provides credit facilities and term loans secured against a portfolio of listed shares. Rather than selling appreciated stock and triggering a taxable event, the borrower pledges eligible equities as collateral and draws liquidity against them.
Facilities are sized against exchange-specific haircuts, structured with an appropriate loan-to-value (LTV) ratio and maintenance margin, and documented under the governing law best suited to the collateral’s jurisdiction. The borrower retains ownership — including voting rights, dividends, and participation in any share-price appreciation — and repays or refinances the facility at maturity.
We originate these facilities by connecting sponsors with the right capital partners and coordinating the structuring, collateral custody, and documentation across borders from the outset.
Keep Your Exposure
Borrowers retain legal ownership of the pledged shares — including dividends, voting rights, and upside participation — so a liquidity need does not force a sale of a conviction position.
LTV Against Exchange Haircuts
Facility size is set as a loan-to-value ratio against the collateral’s market value, with haircuts reflecting the volatility and liquidity of each listed security and its exchange regime.
Maintenance Margins & Alerts
Generous maintenance thresholds and proactive margin alerts help protect the portfolio from forced liquidation during normal market volatility, with substitution and top-up mechanics agreed in advance.
Draw & Repay On Your Schedule
Facilities can be structured as revolving lines or term loans, with interest-only periods and flexible drawdown — capital is available when needed without a rigid amortisation schedule.
Tax-Aware Monetisation
Borrowing rather than selling can defer capital-gains realisation and preserve long-term compounding — a meaningful efficiency for holders of low-cost-basis concentrated positions.
Blended Collateral Pools
A single facility can sit against a diversified pool — equities listed across multiple exchanges, bonds, and other eligible instruments — sized against each asset class’s relevant haircut.
Coordinated Across Jurisdictions
- 01Collateral may sit across multiple exchanges and jurisdictions; we map each holding and coordinate security perfection in the relevant governing law before the facility is agreed.
- 02Haircuts and LTV are sized against the most conservative local-market stress assumptions for each exchange, so a single blended facility respects every jurisdiction’s conventions.
- 03Where the sponsor and capital partner are in different regions, the facility can be drawn in one currency against collateral held in another, with FX and custody coordinated centrally.
- 04Documentation is held in English law or another agreed governing framework that protects all parties and is enforceable across the collateral’s jurisdictions.
VPFS Transactions
Monetise a concentrated share position with downside protection through a variable prepaid forward.
ExploreRepurchase Agreements
Short-term, collateralised funding against eligible securities across currencies.
ExploreEquity Commitments & PIPEs
Committed capital facilities for private placements and structured equity lines.
ExploreDiscuss This Structure
If this instrument fits your opportunity, share it with us. Our teams will coordinate the structure across the relevant jurisdictions.
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