The Scenario: Three partners in a middle market real estate development and management company had created substantial value in the holding company that managed their real estate empire. Although individual projects and the company itself were appropriately financed, their equity in the holding company was lying fallow. They engaged with NYPF to borrow against their illiquid personal stakes in the enterprise.
The Deal: We provided a $20 million, five-year structured loan to the partners through a jointly-held, private investment company. These funds were then used to increase the size of their personal investments in individual projects as well as the rate at which they took on new projects.
The Result: The result was a substantial step-up in their personal wealth creation and ultimately the sale of a stake in the company to a private equity fund at a significantly enhanced valuation.