A Fixed-Term Loan Against a Long-Held
Personal Stock Position

A private investor in his late 50s, based in Switzerland, who had built a large position in a single blue-chip
stock over nearly two decades of accumulation. He had no professional connection to the company, it was
simply a long-standing personal conviction holding that made up close to half of his liquid net worth.

His daughter was getting married, and he wanted to buy a property near Lake Como as a wedding gift and
future family holiday base, worth around €5 million. He did not want to sell any of his stock to fund it,
partly for tax reasons and partly because he considered the position a long-term family asset he intended
to pass on eventually.

He knew the exact amount he needed, wanted certainty over the cost of the loan for a fixed period, and
preferred a clean structure with a known end date rather than an open-ended facility. He also wanted to
avoid a floating rate that could rise unpredictably over several years.

A lender was sourced who was comfortable structuring a term loan rather than a line of credit, at 50%
loan-to-value against the position. The loan amount came to €5.5 million, set up as a five-year fixed-rate
loan with interest paid quarterly and the full principal due at the end of the term rather than amortising, to
fund the purchase of the Lake Como property.

The financing provided a straightforward way to meet a significant family objective without requiring an
immediate sale of a highly valued investment, while benefiting from the certainty of a fixed-rate structure
over the agreed term.

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.