What is happening in plain terms?
You grant the lender a security interest in specified securities. The lender advances funds based on an agreed advance rate against the lender’s valuation methodology (often with volatility haircuts). You pay interest (and sometimes fees) for the use of capital. If you breach covenants—such as loan-to-value triggers—the lender may have rights to demand additional collateral, pay down the loan, or enforce against pledged assets, exactly as written.
This is financing, not investment advice. The structure does not change the market risk of the underlying shares: if prices fall, collateral value falls with them.
How it works
Discovery — goals, amount, timing, and a portfolio snapshot (statements, custody location, restrictions).
Underwriting — exchange, liquidity, concentration, advance rate, term, and recourse profile are modeled.
Terms — you receive a written summary: rate, maturity, covenants, events of default, remedies.
Closing — legal agreements and custodian coordination complete; funds wire when conditions are satisfied.
Ongoing — portfolio marks and reporting continue until payoff. Our public process page mirrors this lifecycle for quick reference.
Key benefits
- Disciplined access to liquidity — documented path to cash when selling feels strategically wrong.
- Global collateral sets — not limited to a single domestic exchange list.
- Alignment with sophisticated borrowers — process built for portfolios, not cookie-cutter consumer underwriting alone.
Risks or considerations
Market risk, maintenance triggers, interest cost, and enforcement risk remain. Tax and securities law vary by country—this site does not provide legal or tax guidance. Read every disclosure in your term sheet and closing set before you sign.
When this strategy makes sense
- Preserve long-term holdings while funding near-term needs.
- Bridge timing between vesting, M&A, or real-estate closings.
- Business or personal liquidity — map your profile on solutions.