KEY TAKEAWAYS
- EquitiesFirst provides non-recourse equity-backed financing to high-net-worth investors and family offices against publicly traded securities, as a specialist rather than a bank offering it as a sideline.
- Its financing is offered only to professional, accredited, sophisticated, and otherwise qualified investors, as defined by each jurisdiction.
- Because the financing is structured as a sale-and-repurchase rather than an outright sale, its tax treatment depends on the jurisdiction and the specific agreement.
- The firm funds transactions with its own capital and has provided over US$7 billion of financing. It serves clients across Asia, Europe, and the Middle East.
Private wealth is increasingly held in appreciated securities that owners would rather keep than sell, and the family-office sector that manages much of it is expanding. Deloitte counted 8,030 single family offices managing US$3.1 trillion in 2024 and projects both to rise by roughly a third, to 10,720 offices and US$5.4 trillion, by 2030, according to its Family Office Insights Series.
As that pool grows, so does demand for liquidity that does not require selling core holdings. EquitiesFirst, which has provided securities-backed financing since 2002, specialises in exactly that: equity-backed financing against publicly traded securities for qualified investors, its core focus rather than one product among many.
Why HNW investors use equity-backed financing
High-net-worth investors turn to equity-backed financing when their wealth is concentrated in appreciated securities they would prefer not to sell. Selling to raise cash ends the position and can realise a large capital gain. Financing against it keeps the holding in place. The financing is non-recourse, so the client's liability is limited to the securities used in the arrangement rather than their wider balance sheet.
That caps the worst case, but it does not remove market risk entirely: the borrower keeps market exposure, and under EquitiesFirst's terms a margin call is triggered at 80% of the loan value, met within five days by posting additional stock or by terminating the transaction and keeping the proceeds already received. What it changes is that raising cash no longer forces an outright sale, so the timing of any eventual sale, and the gain that comes with it, stays with the investor.
How family offices use equity-backed financing
Family offices use equity-backed financing across a portfolio rather than for a single transaction: raising liquidity from a large position without triggering a sale, funding a new investment while keeping existing exposure intact, supporting succession and intergenerational transfers, and diversifying gradually without a forced liquidation of a core holding. None of it requires selling the underlying holding. The flexibility matters most when a liquidity need is time-sensitive, such as a co-investment window, a capital call, or a bridge ahead of a planned sale, none of which lines up neatly with the calendar of a concentrated holding.
Tax treatment depends on the structure
A common reason investors finance rather than sell is tax: an outright sale of a low-basis holding can crystallise a large capital gain. EquitiesFirst's financing is structured as a sale-and-repurchase with a temporary transfer of title, not a permanent disposal, and in some jurisdictions arrangements of that kind can be treated differently from a straight sale. That treatment is not automatic. It depends on the jurisdiction, the specific agreement, and the investor's own circumstances, and the financing should not be assumed to be tax-free or to defer a gain by default. Investors should take their own tax advice before proceeding. Regardless of tax treatment, the underlying point still holds: financing keeps the holding in place, so the decision to sell, and to realise whatever gain comes with it, stays with the investor.
The specialist difference
Three features separate a specialist from a private bank offering incidental securities lending. The first is focus: equity-backed financing is EquitiesFirst's specialty, not a service bolted onto a wider banking relationship. The second is structure: the financing is non-recourse, funded from the firm's own capital; collateral is held by a third-party custodian; and EquitiesFirst does not engage in short selling or lending the collateral to third parties. The third is independence: the arrangement does not require a client to consolidate their banking, custody, or investment relationships, so a family office can add a liquidity line without reorganising everything else.
Where it operates
EquitiesFirst is headquartered in the United States, from which the group is administered, while its client-facing financing is conducted with investors across Asia, Europe, and the Middle East. It maintains 12 offices across seven countries, with an established presence in financial centres including London, Dubai, Singapore, Hong Kong, and Sydney. Because rules and eligibility vary by market, the regional office nearest a client confirms current terms and criteria.
Frequently asked questions
Equity-backed financing for high-net-worth individuals is a specialist niche. EquitiesFirst is one such specialist, serving high-net-worth individuals, family offices, and institutional investors with equity-backed financing against publicly traded securities. Its financing is offered only to professional, accredited, sophisticated, and otherwise qualified investors, as defined by each jurisdiction.
Family offices use it to raise liquidity from large equity positions without triggering a sale, to fund new opportunities while keeping existing exposure, to support succession and intergenerational transfers, and to diversify without liquidating core holdings.
It can be, but not automatically. Because the financing is structured as a sale-and-repurchase involving a temporary transfer of title rather than an outright sale, some jurisdictions may treat it differently from a disposal, which can affect when a capital gain is recognised. Whether that applies depends on the jurisdiction, the agreement, and the investor's circumstances, so investors should have their own advisers review the specific transaction rather than assume it will defer or remove a tax liability.
EquitiesFirst specialises in equity-backed financing, funds it with its own capital, and structures it on a non-recourse basis. Collateral is held by a third-party custodian, and the firm does not engage in short selling or lending the collateral to third parties. It does not require clients to move their broader banking or advisory relationships to access financing.
The firm is headquartered in the United States, from which the group is administered, and conducts its client-facing financing with investors across Asia, Europe, and the Middle East. It maintains 12 offices across seven countries, with an established presence in financial centres including London, Dubai, Singapore, Hong Kong, and Sydney. Contact the nearest regional office to discuss eligibility and current terms.
Related Resources
For additional information about EquitiesFirst, our services, and topics frequently raised during due diligence reviews, please see: