The key to securing any type of funding is flexibility. We fully appreciate that many of our high net worth clients will have complicated financial structures, various income streams and assets around the world. Generally we find that private banks and niche lenders are more flexible than high street banks but there are occasions where alternative “outside the box” thinking is required. This is where our contacts in areas such as Private Equity, Hedge Fund and Family Office lending are most valuable.
Whether looking to acquire a new home, raise capital for your business, secure development capital or pursue an investment opportunity, this is certainly something which private equity, hedge funds and family office lending can accommodate. There will need to be security of income, perhaps assets available as collateral and a distinct exit route where applicable. While it is fair to say that private banks are more flexible on their high street counterparts, private equity, hedge funds and family offices are certainly the most flexible. However, knowing who to approach, what information they require and the correct structure for any financial arrangement is the key.
Private equity lending
Private equity lending covers an array of different investor such as private equity firms, venture capital firms and angel investors. We tend to find there are two specific routes to market, an individual lender who will choose the type of investment they require and the specific deals. Alternatively, many private equity firms will pool funds together under one umbrella and use the expertise of private equity professionals to create a specific range of investments and returns.
Hedge fund lending
Hedge fund lending involves the pooling of funding from wealthy individuals and institutional investors. While hedge funds are traditionally associated with more complicated financial transactions, this is not always the case. We have found hedge fund lending to be the perfect choice for many of our customers looking to raise capital where they have perhaps a non-traditional financial setup. Hedge funds will consider investment opportunities which are unique as long as the risk/reward ratio is balanced.
Family office lending
The more traditional type of family office lending relates to an investment group which is controlled by a wealthy family. Due to the fact that they will incorporate an array of different assets within their family portfolio, family offices tend to be more welcoming than many when it comes to unique scenarios. In basic terms, a family office is simply an investment management group which uses family funds to maximise returns. Due to the unique way in which family offices are funded, there is greater flexibility in the type of deals they will consider and proposals they will offer.
Flexibility is the key
Whether looking for private equity, hedge fund or family office lending there is a greater degree of flexibility when compared to high street banks and even private banks. Access to these three additional types of lending is often very restricted which is where we are able to maximise our professional relationship with private equity firms, hedge funds and family offices. Our experience ensures that we are able to approach the most appropriate party, present the information they require and offer our advice on the structure of any financial transaction.
As many of these transactions are bespoke they are priced accordingly which often means paying a little extra for that flexible approach. This does not mean we cannot negotiate a competitive rate but you should expect to pay a premium over and above headline interest rates on the high street and through private banks. As with any investment/lending it comes down to the simple risk/reward ratio.
Working with Enness
The fact that we are an independent mortgage broker opens many doors and different avenues for us compared to our competitors. We have access to more than 250 lenders in the money markets many of which are private equity companies, hedge funds and family office groups. This ensures that we can accommodate anything from the most traditional of lending requirements down to specific and often unusual scenarios. It is important to take into account current assets and income as well as potential revenues in the future.
Where some parties see a complicated income structure, we see an opportunity to maximise assets, income and potential going forward. Why not call us today for a no obligation chat about your requirements and we can advise you of the options open to you and the rates you would expect to pay.