Raising Capital Against a Concentrated
Stock Position

A UK-based tech executive, mid-40s, who had spent over a decade at a company that listed publicly a few
years earlier. The bulk of his personal wealth, around £12 million, sat in a single holding, shares in his
former employer, which he'd held onto rather than sold, believing in the company's long-term trajectory.

He wanted to buy a second home in the south of France, in the region of £3.5 million, plus set aside some
capital to co-invest in a friend's early-stage business. Selling shares to fund this would have meant
crystallising a large capital gain. Much of his stock had been acquired at a fraction of its current price, so a
sale of this size would have triggered a significant tax bill and, just as importantly, meant giving up a
position he still believed in.

Most mainstream lenders offering securities-backed lending prefer diversified portfolios: dozens of
holdings spread across sectors, so no single company's bad quarter can sink the collateral. A
concentrated single-stock position is a harder sell. The loan's safety depends entirely on one company's
fortunes, so advance rates are lower and fewer lenders are willing to underwrite it at all, especially at the
size he needed.

A lender comfortable with concentrated single-name collateral was sourced, willing to advance 50% loan-
to-value against the position. The loan amount came to £6 million, structured as a fixed-term loan over five
years, with interest paid quarterly at a fixed rate, funding both the purchase of the property in the south of
France and the co-investment opportunity.

This case is illustrative, and is built to demonstrate the types of arrangements we coordinate, with figures and details
altered to protect client confidentiality. The benefits and risks are simplified for this purpose.