SG Credit Profile: High Net Worth
The Company: A single-asset real estate holding company owned by a high net worth technology executive (“the Guarantor”).
The Financing Situation: The Guarantor agreed to acquire a lakefront residential land parcel in an emerging city. Although the Guarantor had the asset base to fund the purchase with equity, much of his net worth was tied up in fully vested stock options that had punitive tax consequences upon conversion. Additionally, the seller was fatigued and wanted to close in less than three (3) weeks, meaning conventional bank financing was not a viable option.
The Solution: SG underwrote the real estate as well as the outside personal assets of the Guarantor. Given the location and liquidity of the underlying real estate collateral, coupled with the strength of the Guarantor’s personal balance sheet, SG was comfortable providing a high LTV loan. SG moved quickly to meet the timing constraints and closed within three (3) weeks from executed term sheet.
This transaction underscores SG’s ability and willingness to structure and underwrite collateral based / guarantor-based loans. While many of you know us as a cash flow or technology (SaaS) lender, we now provide special situation (balance sheet) loans requiring creativity, flexibility, and speed to close. We also have a strong interest in providing customized solutions for liquidity constrained high net worth entrepreneurs.