As an investor with large equity positions, you face an enviable challenge: How can you protect your investments and extract the most value from them?
You could sell your shares or options, but that’s rarely the most advantageous way to gain liquidity. Once they’re sold, you can’t benefit from further gains in their market value. Your need for cash may not coincide with a good share price. Alternatively, you could borrow against your equity assets through a bank or broker. But typically, you’d only be able to extract about half of their value, and there’s the added risk of a margin call, which is essentially a full recourse environment.
Silverbear Capital can provide creative solutions to this dilemma.. solutions that enhance your ability to manage your wealth. We offer a set of tactical financial structures that deliver three powerful benefits: liquidity, so you can tap the value of your equity assets; hedging, so you can protect your equity assets against a market decline; and opportunity, so you can keep your equity assets working for you. The structures we provide are amazingly easy to use, and backed by impeccable service in a confidential environment.
Utilizing a stock based loan from Silverbear Capital, shareholders of free trading stock, and in some cases, restricted stock can get liquidity from their asset now, while retaining contractual ownership. You can profit from appreciation of your portfolio should the stock price rise in value when the loan matures, however should your share price decrease in value, you can enjoy the freedom of walking away from your loan with no further obligations. The flexible exit strategy permits you to either pay off the loan and regain your securities, or walk away from interest payments or repayment entirely and forfeit only the collateralized securities.