Strategic Equity Finance
GPs can often be left with material stakes in listed or pre-IPO stakes - financing against these “Strategic Equity” posititions can be an extremely discrete and efficient method to extract liquidity to generate funding for new business or LP distributions.
We are expert in arranging, structuring and advising on strategic equity solutions for all asset owners.
- margin loan financing with or without credit enhancement;
- option based financing with embedded downside protection;
- other structured financing transactions including swaps, structured notes, and repos; and acquisition, disposal, risk management and yield enhancement strategies
The over-arching premise is to utilise the strategic asset to generate liquidity that can enhance returns by either lowering the financing cost of investment, returning capital to investors or being further reinvested.
The value proposition
This is an extremely niche area where lenders face significant complexities due to the concentrated nature of the risk and often legal and regulatory aspects specific to each jurisdiction.
Our market-leading product expertise, significant cross-border and multi-jurisdiction experience combined with our extensive relationships with both bank and non-bank lenders, uniquely positions us to deliver the best possible structure and terms whilst also meeting the borrowers strategic objectives.”
