New York Private Finance provides non-dilutive capital for entrepreneurs. Although we have provided loan facilities to clients ranging from small, independent sponsors to billionaire investors, most of our clients are middle market entrepreneurs. They pledge their equity in illiquid assets (privately-held companies, LP interests in funds, real estate, art, etc.) as collateral for personal loans primarily for three purposes.
First and foremost, they seek additional capital to expand their primary businesses. Often this takes place in anticipation of a liquidity event sometime in the next few years. Their goal is to continue to invest in order to take the business to a level at which they would be willing to take some or all of their chips off the table. NYPF enables them to do so without further dilution of their ownership interests and without anyone interfering in operations or governance.
The second most common use of our loan facilities is for acquisition or diversification. Some clients seek to grow their business by acquiring another one that fits their strategic plans. Others opt to diversify by using our funds to invest in unrelated businesses and thereby reduce risk.
Last, but not least, about a quarter of our clients use loan proceeds to buy out a partner or facilitate inter-generational transfer. Often one partner has achieved his personal wealth objectives and wishes to cash out, while another wishes to double down. Such loans are attractive for both NYPF and the borrower, as the loan facilitates an immediate increase in a key collateral asset around which the entire facility has been structured.
Although these three primary uses of NYPF’s non-dilutive capital differ in kind, our clients’ objectives are consistent throughout: unlock value trapped in illiquid assets, minimize dilution; maximize control of both operations and governance; and continue to grow their wealth.
Please contact us to learn how we can support your growth.
