Borrow Against Your Illiquid Assets
New York Private Finance (NYPF) offers innovative, non-dilutive financing solutions for individuals looking to leverage illiquid assets, such as stakes in private companies, limited partnership interests in funds, and real estate. Our tailored credit facilities are designed to meet the unique needs of entrepreneurs and investors.
Generate flexible, non-dilutive capital
NYPF provides tailored credit solutions for individuals who wish to unlock the value accrued in their illiquid private ownership interests, and maintain control of those assets. Our borrowers include entrepreneurs, investors, independent / fundless private equity sponsors, company operators, real estate developers, or anyone with private assets.
Use Cases
Our clients are wealthy but often hold concentrated positions in illiquid private stock and investment vehicles. They seek to make additional equity investments to stimulate growth, fund diversifying acquisitions, or buy out partners. The following are examples of various uses of proceeds for our loans.
Some clients use our financing to acquire complementary businesses or diversify into unrelated sectors. Whether it’s a strategic bolt-on acquisition or a new vertical entirely, our loans enable borrowers to put their own capital into the project.
We work with independent, or fundless, private equity sponsors who have created successful portfolios but operate without committed capital. A typical issue they face is quickly coming up with capital to successfully compete for deals in a compressed time frame. We solve this problem. Similar to a NAV loan, our facilities provide the necessary capital to make new investments, fund capital calls, bridge to an eventual liquidity event, etc., while using the existing portfolio as collateral.
Limited Partners in private funds often face capital needs before a fund’s natural liquidity timeline. NYPF structures loans against LP interests to help investors access liquidity – for capital calls, new investments or side-car investments – without selling their positions at a discount or disrupting the fund relationship.
In situations where one partner wishes to exit and another wants to reinvest, our loans facilitate clean, efficient transitions. Similarly, families use our facilities to transfer ownership across generations without triggering forced asset sales or outside investment.
Many of our borrowers use loan proceeds to invest directly in the growth of their primary businesses. This may include funding new hires, marketing initiatives, infrastructure improvements, or expansion into new markets. In many cases, the borrower is positioning the company for a future liquidity event, while preserving full ownership and operational control.
Entrepreneurs with early-stage, but high-potential, businesses often find conventional financing out of reach. We provide capital backed by the founders’ personal or illiquid assets, enabling them to fund operations, build teams, and reach key milestones—without sacrificing equity at a vulnerable stage.
We regularly meet investors who expect a liquidity event at some future date. For those cases our facilities offer a flexible solution, providing additional capital for a host of use cases. Whether the borrower is waiting on a pending liquidity event, asset sale, or institutional financing, we provide capital to maintain momentum and meet urgent needs.
Borrowers with existing high-cost or maturing debt often turn to NYPF for more favorable terms. We refinance legacy facilities with structures that align better with the borrower’s assets, cash flow, and strategic objectives—often unlocking new capacity in the process.
Intermediaries
NYPF works closely with financial intermediaries who provide advisory services, both capital raising and merger & acquisition advice, to entrepreneurs in the middle market.
By enabling clients to borrow against their illiquid private stock and other private assets, NYPF’s credit facilities offer an alternative to traditional capital sources and allow entrepreneurs to avoid dilution and maintain control.
Summary of Indicative Terms
While many of the terms of our loans are tailored to the specific needs of the individual and the transaction, a summary of Indicative Terms is highlighted below.
Borrower(s)
Individual(s), or special purpose vehicle (incl. holding company), w/ a guarantee from the individual(s)
Amount
$5 – 30 million
Maturity
3 to 6 years
Collateral
Illiquid assets such as direct interests in private companies, limited partnership interests in private equity or venture capital funds, real estate, art, jewelry, and other illiquid private assets.
Rate
In addition to charging a current coupon, a portion of the interest cost of each loan takes the form of a “participating interest” in the investing activity of the borrower. This allows us to keep the current coupon lower and it aligns the borrower’s interests with ours, encouraging us to work with the borrower through any situation that may develop.
Structure
Our facilities are made to individuals or SPV’s with full personal guarantees, secured by pledges of collateral, and are not obligations of the operating vehicles into which the client invests. We structure our loans to co-exist with other credit facilities from different lenders.
