Situation

The CEO of a rapidly expanding, VC-backed cybersecurity firm wanted to acquire a prime residential property in the San Francisco Bay Area. The CEO's wealth was concentrated in privately held company equity with limited liquid capital available. A straightforward mortgage did not fit the collateral profile, and the CEO needed to retain shares long enough to qualify for favorable Qualified Small Business Stock (QSBS) tax treatment.

Approach

We sourced a capital provider with a flexible mandate and structured a facility against a diversified basket of collateral: the target property and equity in the CEO's privately held company. The structure was designed so the CEO would not need to sell shares, preserving QSBS eligibility and resulting in significant tax savings on the overall transaction.

Outcome

$8 million in NAV-backed financing. The CEO acquired the property, retained full ownership of company equity, and held shares long enough to qualify for QSBS treatment.