At New York Private Finance, our mission is simple: help private investors access capital by leveraging illiquid assets that would otherwise sit idle.
Since the Basel II Accords, stricter capital requirements have made it prohibitively expensive for large private banks to lend against these types of assets. But at NYPF, we operate differently. Backed by Emigrant Bank—one of the oldest and largest family-owned bank in the U.S.—we have the flexibility to fund loans backed by illiquid or alternative assets. Additionally, the bank’s owners take a long-term approach to wealth creation and are therefore ideal partners to entrepreneurs who are building for the long term.
Leveraging illiquid assets allows entrepreneurs to unlock meaningful capital without selling core holdings. That kind of flexibility is often critical when timing matters or when selling an asset would trigger negative tax or strategic consequences.
Each NYPF loan facility is structured to meet the needs of individual clients. That said, there are common elements across all of our deals. We require a diversified collateral pool with a loan-to-value ratio of at least 4:1. While we are focused on the strength and stability of the collateral, we also evaluate the borrower’s ability to service current interest. As a regulated bank, we cannot accept PIK interest, but we may structure interest reserves or other forms of near-term support.
A client with a portfolio of illiquid assets worth perhaps $40 million could conceivably unlock as much as $10 million for incremental investment, to fund an acquisition, or to buy out a partner – all without touching the balance sheet(s) of the underlying collateral assets. Most of our clients have more opportunities for investment than liquid capital to invest. New York Private Finance resolves that conundrum.
Leveraging illiquid assets through NYPF gives successful individuals the ability to act on opportunity—when traditional financing won’t.
Contact us to see how we can help.
