Private capital
Private Funding
Investor-led capital routes through private investors, family offices and HNIs, for requirements that suit a private structure.
ExploreSecurities as collateral
Share Pledge Funding
Promoters and shareholders sometimes prefer to raise funds against their holdings rather than sell them. FundBee facilitates conversations with lenders and investors who consider such structures.
What it is
In a share pledge structure, eligible shares or securities are offered as collateral for a funding facility. The shareholder retains ownership while the pledge is in place, subject to the terms agreed.
Whether a holding is acceptable, and on what terms, depends on the lender or investor: the type of security, its valuation and liquidity, existing encumbrances, documentation and the regulations that apply.
Collateral considerations
Know this before you pledge.
- The lender or investor decides which securities are acceptable and how much can be raised against them.
- Pledged securities move in value. Facilities normally carry margin requirements that the borrower must maintain.
- Pledges of listed company shares, and promoter pledges in particular, carry regulatory and disclosure obligations. Take independent legal and financial advice.
Indicative process
How FundBee approaches it.
- 1Understand the holding, the entity and the purpose of funds
- 2Check basic eligibility before approaching any counterparty
- 3Approach lenders or investors who consider the relevant security type
- 4Coordinate valuation, documentation and term discussions
- 5Support the process through to execution
Important. Funding is subject to eligibility, due diligence, documentation and the criteria of the relevant lender, investor or partner. FundBee facilitates and connects; it does not lend and cannot guarantee an approval.
FAQ
Common questions.
How much can be raised against my shares?
There is no standard figure. It depends on the security, its valuation and liquidity, and the criteria of the lender or investor concerned.
Do I lose ownership of pledged shares?
Ownership normally stays with the pledgor while obligations are met, but the pledge gives the lender rights over the shares under the agreed terms. Review the documents with your own adviser.
Discuss Share Pledge.
Tell us what you need. We will tell you honestly whether we see a route, and what it would take.
Funding is subject to eligibility, due diligence, documentation and applicable partner, lender or investor criteria.
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