Equity-backed loans allow investors*, typically with concentrated holdings, to use their shares as collateral to unlock liquidity for other needs while still maintaining upside participation in the stock.
To learn more about how we do it at EquitiesFirst, please click here.
A non-recourse loan means when the loan defaults, the lender can only use the pledged collateral to satisfy the debt obligation. The borrower has no further obligation or risk of personal assets. At EquitiesFirst, borrowers can also retain economically beneficial ownership of their shares, entitling them to all future market appreciation and dividends.
It refers to accessing capital (usually fiat currency) in exchange for crypto assets as collateral.
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EquitiesFirst provides single-stock financing to borrowers* collateralized by publicly traded securities under a repo agreement. In practice, the transaction is a temporary transfer of ownership (typically 3 years) to EF and in return the shareholder receives attractive finance terms. We use our proprietary capital to offer competitive terms and are often able to lend against listed equities considered challenging by private banks.
To learn more about the process, please click here.
We are able to provide non-purpose and non-recourse liquidity against competitive terms, including a high loan-to-value ratio and low fixed interest rate, while borrowers are entitled to all future market appreciation and dividends.
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No. The funds may be used for any purpose.
EquitiesFirst is licensed and/or registered in all jurisdictions where required. For nearly two decades, we have upheld high standards in regulatory compliance, internal controls and due diligence. EquitiesFirst has no external borrowings or investors. As part of EF’s proprietary global portfolio, the collateral is managed and rebalanced as needed over the life of the loan. The portfolio is diversified across countries, sectors and time intervals, to ensure discrete and systemic risks are mitigated and well-managed.
To learn more about how we manage risk, please click here.
This is subject to your shareholding, your role in the company and local reporting requirements.
For more information, please leave us a message and we will follow up with you.
No, the voting rights transfer with the shares. However, EquitiesFirst abstains from voting and refrains from any company management decision-making. For more information, please leave us a message and we will advise according to your case.
For equities the margin call threshold is 80% of the LTV.
We issue a written notice when there is a margin call event and there will be a 5-day period to top up. It is the shareholder’s option to top up or terminate the transaction, while keeping the loan proceeds with no further obligation. We are happy to provide a tailor-made analysis for your case, please feel free to reach out to us.
EquitiesFirst does not lend or rehypothecate shares to third parties and we are contractually prohibited from any naked short selling of the shares. As a long-term investor, EquitiesFirst does not exercise voting rights or get involved in the company’s strategy or management.
* Only accredited investors, sophisticated investors, professional investors, and otherwise qualified investors (who have sufficient knowledge and experience in entering into securities financing transactions)