Welcome to the EN Capital newsletter where we promote different capital sources such as private lenders, family offices and equity funds in addition to general capital markets news. We’re also promoting the new alternative investment conference series called Uncorrelated, EN Capital is a partner in certain Uncorrelated events.

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New Platform Providing Liquidity Support for Loan Guarantees

A new platform is coming to market to provide liquidity support to commercial real estate borrowers that need assistance meeting lender liquidity requirements for certain guarantees or investors that don’t want to have liquidity tied up over the life of a loan.

Example: An investor is buying an apartment building for $60M and a lender is willing to provide 66.6% LTV purchase financing ($40M loan amount) and has a liquidity covenant of 10% ($4M) that must be maintained during the term of the loan. The investor doesn’t want to have $4M locked up and unable to be invested in other deals during the term of the loan. This platform will pledge their liquidity alongside the investor, freeing up the investor’s capital.

They charge origination, annual maintenance fees and occasionally profit participation depending on the risk profile of the deal. Think of them like an insurance company - pricing is a direct function of risk. They will provide support for completion guarantees and bad-boy carve-outs but not repayment (full recourse) guarantees.

To be clear, they’re providing a credit enhancement alongside the borrower, not in lieu of the borrower. The borrower will still be signing the guarantees along with this platform.

Deal Criteria:

• Property Types: All but Office

• Underlying Loan Amount: $8M - $200M

• Max LTV: 80%

• Loan Term: 1-7 Years

• Deal Types: Acquisition, Refinance, Re-Capitalization or Construction

• Geography: Nationwide

• Origination Fees: 0.5% - 2% of the Loan Amount

• Annual Maintenance Fee: 0.25% - 2% of Outstanding Balance

• Guarantees Provided: Non-Recourse Carve-Outs & Completion

If you have a deal that needs liquidity support click the button:

• We’ve been building this email list this since 2017 and we’re up to 38,000+ professionals focused on the capital markets for alternative investments such as commercial real estate, the space industry, renewable energy, LATAM deals and utilizing Data-as-an-Asset. So you’re in good company.

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• EN Capital is NOT a broker dealer and does not sell securities

• EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.

Be sure to connect with EN Capital on Linkedin. and visit our website here.

Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-9253