Situation

A family office managing a diverse portfolio of companies needed liquidity to support growth in select holdings. Selling positions was not an option. The family office wanted to maintain its existing equity to capture future appreciation, and a sale would have triggered a taxable event. Their primary bank, a large national institution, referred them to us. The loan structure did not fit the bank's lending criteria.

Approach

We obtained multiple term sheets from private credit funds and evaluated each against the family office's two non-negotiables: no dilution of existing equity positions and no taxable event. We selected a reputable, multi-billion-dollar private credit fund and structured a $31 million facility collateralized by the net asset value of the family office's diversified portfolio. We also arranged deposit account control agreement (DACA) services as part of the structure.

Outcome

$31 million in liquidity. The family office maintained full ownership across its portfolio, avoided triggering any taxable event, and preserved its long-term investment strategy.