Single stock lending is a highly specialised form of financing in which a borrower secures a loan against a single equity position. This allows borrowers to unlock liquidity while retaining full ownership of their shares. Single stock lending is commonly used by family offices, founders, and majority shareholders who wish to maintain control, governance rights, and economic exposure of their equity while accessing capital for growth, investment, or liquidity needs.
Single stock lending refers to a loan secured against a specific equity holding, rather than a diversified portfolio. These loans are subject to stricter underwriting standards due to the concentration risk involved.
A typical structure involves the borrower pledging shares into a security agreement held by a third-party trustee. This allows the borrower to retain voting rights and upside exposure, provided all loan covenants are met. Single stock loans generally have:
Portfolio-based lending uses a diversified set of assets as collateral, reducing lender risk and often allowing:
Single stock lending, by contrast, focuses on a single asset, resulting in:
While often more costly, single stock lending allows borrowers to access capital against concentrated positions without selling shares.
Single stock lending provides liquidity for borrowers with highly concentrated equity holdings without requiring them to divest.
Borrowers can obtain immediate financing while retaining ownership, governance rights, and economic upside.
Single stock loans are commonly used as short-term bridges to corporate events, such as:
Silver Oak Capital advises clients on structuring single stock loans that maintain shareholder control, avoid triggering share sales, and protect long-term equity value.
While some banks offer single stock lending, the most competitive facilities are provided by specialist lenders. Silver Oak Capital’s network of hundreds of single stock lenders ensures clients gain access to tailored financing solutions.
We negotiate favourable loan terms, ensuring clients retain protection, flexibility, and security while meeting liquidity objectives.
Loan amounts are determined by the value, liquidity, and volatility of the underlying share. For example:
Lenders decide the LTV on a discretionary basis, considering trading volume, market cap, and price volatility.
The lender monitors the share price throughout the loan term to ensure exposure stays within agreed LTV limits. If the price declines:
Yes. Founders and insiders can use single stock lending, but must comply with: