Recently, a private banker from a Swiss private bank reached out to Enness to help source capital for a VIP client. While the banker’s institution manages clients’ money, it doesn’t lend to clients. One of the banker’s clients needed to borrow very significant capital. While the bank couldn’t provide a loan, the banker naturally wanted to offer a solution for the client.
The banker asked Enness if they could source a solution that preferably wouldn't require their client to enter into a new banking relationship with another institution.
The Borrower
Before approaching lenders, Enness first assessed the borrower to understand their background, assets, and the projects they needed capital for. This process allows Enness to identify which assets could be used as security and which lenders would meet both the borrower and their banker’s requirements.
The borrower was an ultra-high-net-worth individual who resides in Europe and is not a UK citizen. The individual’s wealth was predominantly generated through business activities in the oil and gas industry. In recent years, however, the borrower has moved into other endeavours and has built businesses, invested in other ventures, and bought appreciating assets.
The UHNWI wanted capital for diverse ventures, including investing in various projects, starting a business and investing in portfolios.
The Security
During discussions, Enness identified that the UHNWI had a high-value property in London, which the individual owned outright with no mortgage. The team recognised that they could approach lenders who would use the property as security for a loan. Using the property as security for finance would also ensure the deal was tax-efficient for the UHNWI while creating the required liquidity.
The Solution
In this situation, Enness’ mission was twofold: to source the capital the borrower required at the best rate and put the banker in the most advantageous position with regards to their client and their institution.
With this in mind, Enness’ team approached a lender that could:
- Lend significant capital to the UHNWI to invest in various projects
- Offer an advantageous rate
- Would allow the assets to be managed by another bank
Enness secured a high-value ten-year loan for the UHNWI at a rate of 1.8% (70% loan-to-value). Satisfied with the presentation of the individual’s plans, profile and business acumen, the lender was prepared to give the borrower a significant portion of the loan without them having to provide highly detailed explanations of exactly how they would deploy the capital.
The total sum borrowed by the UHNWI is now managed by the original banker in Switzerland, significantly increasing the banker’s assets under management.
Contact Us
Wherever possible, Enness will work to provide you and your client with the solution that meets the needs of all parties. If your clients need to access capital for business or personal projects or ventures, get in touch. Enness’ team would be delighted to talk you through options and solutions that could provide the outcome you require.
