The Scenario: A successful entrepreneur who had established a single family office acting as an independent private equity sponsor sought to borrow against a broad range of illiquid assets including equity in directly invested private companies, private equity funds and venture capital pools. The use of proceeds was to meet periodic capital calls from passive investments as well as to provide substantial capital to inject in two start-ups created by him: a private equity fund with a unique specialization; and an on-line financial services venture.
The Deal: NYPF structured an initial loan of $5 million. Continuing growth in the value of his illiquid portfolio, coupled with certain limited liquidity events and substantial increases in the value and opportunity set for his two start-ups, caused him to seek increased funding from NYPF twice since the inception of the loan.
The Result: The facility grew to more than 3X the initial amount and set the stage for a major upcoming liquidity event.