Equity released from the unencumbered asset was required for business capital purposes
Specialist debt advisory firm Arc & Co. has secured $14m for a Middle Eastern client in need of equity release.
The funding was secured against a brand new 50-metre Mangusta 165 REV yacht.
Nikita Nigai, Head of International Clients at Arc & Co. and lead advisor on the deal, worked with a US hedge fund to structure the unique funding package, which was used to release the funds which are to be utilised as a business cash injection.
The 50% LTV facility is for a term of 18 months.
Nikita navigated contracted timescales, confidentiality requirements, and complex legal requirements to get this deal over the line.
Nikita commented: “The first complexity faced is that the usual four- to six-month process with a standard term lender was not acceptable—we needed it funded in a shorter timeframe.
“Secondly, equity release is not typically the preferred kind of finance offered by many yacht lenders.
“Due to a number of cross-border legal restrictions, we had to find a lender who is experienced and flexible enough to take an individual approach.”