Equities First Holdings has recently completed its first UK transaction. EFH, which specializes in stock loans to high net worth individuals, has provided financing to several AIM (Alternative Investment Market) companies and executives. Andrew Newland took out $2 million in financing against his shares of his biotechnology company Angle PLC. Newland recently bought back his shares, although other AIM entrepreneurs have not done quite as well. Rob Terry of insurance outsourcer Quindell opted not to buy back his shares due to the share prices taking a big hit. Edi Truell of invoice firm Tungsten currently has an outstanding loan which he hopes will turn out to be a profitable deal.
EFH has 14 years of experience in providing securities-backed financing to individuals and businesses. Most loans are non-purpose, so they provide a great deal more flexibility than bank loans and other traditional financing options, and their deal-by-deal operational style means that each client gets a customized deal that meets their needs. Their stock loans also allow for a much higher LTV ratio than with banks.With EFH’s recent acquisition of London-based Meridian Equity Partners.The firm has become a truly global investment company, giving investors and companies around the world an alternative way to raise capital as traditional lenders adopt more restrictive criteria.
The firm boasts offices in Indianapolis, London, Singapore, Thailand, Hong Kong, Melbourne, Perth, and Switzerland. According to founder Al Christie Jr., in addition to stock-based loans providing easier qualifying, these types of loans also provide a kind of hedge if the market declines. In most cases, these loans are non-recourse loans, meaning the borrower can walk away at any time in the event of a loss. Stock loans can be preferable to margin loans as margin loans can be called in at any time and often require qualification and LTV ratios along the lines of a conventional bank loan.
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