Meeting a critical investment deadline with Lombard lending
Our client’s wishes
Mr A, an Irish national living in the UK, approached Nedbank Private Wealth following a recommendation from a friend. He required a Lombard loan, secured against his investment portfolio, to invest in a private equity opportunity with his new employer. His portfolio was in the process of being transferred to our platform, and he wanted to use it as security for this investment.
Our clients' situation
What was a straightforward request quickly became time sensitive when Mr A’s investment deadline was unexpectedly brought forward by two weeks. This left us with one week to complete the asset transfer and ensure the funds were ready.
Adding to the complexity, Mr A had only recently joined the private equity firm. This meant he had no established income pattern in his new role, and his base salary alone didn’t meet our standard affordability criteria. It was also confirmed that not all of Mr A’s assets would transfer in time to meet the new deadline.
Despite these hurdles, we were determined to ensure Mr A received an exceptional outcome from us.
Our clients' outcome
Despite these hurdles, we were determined to ensure Mr A received an exceptional outcome from us.
His £500,000 loan request was within our Lombard criteria, with a loan-to-value ratio below 50%. So, to resolve the affordability question, we looked at Mr A’s remuneration history from the previous three years, paying special attention to his profit distributions. These records demonstrated suitable earnings to support his application, even after applying significant safety margins, and our Credit Risk team were able to approve the request. The team then closely monitored the transfer process to ensure the facility’s drawdown could proceed, enabling the timely transfer of funds on the same day to meet the client’s deadline.
On deadline day, everything went seamlessly. The asset transfer completed first thing in the morning, and just a few hours later, we confirmed the drawdown and transferred the funds. Most importantly, Mr A was able to make his investment on time.
As a new client, Mr A was delighted with how quickly and smoothly we handled his request. What could have been a stressful experience became a demonstration of our commitment to understanding his needs and finding solutions, even under pressure.
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Contact
Get in touch with a member of our team to find out how Nedbank Private Wealth can help you achieve your financial goals and objectives.
Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.
Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.
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