Portfolios We Work With
Most Lombard cases we arrange involve a discretionary or advisory portfolio managed by a private bank or wealth manager, made up of listed equities, government and investment-grade bonds, funds and cash. Some clients hold their investments with one institution; others have assets spread across several custodians and want to borrow against the whole picture. We also work with portfolios held by personal investment companies, family investment companies and trusts.
The assets that support the most lending are diversified, liquid and easy to value daily. Concentrated single-stock positions, smaller listed companies and less liquid funds can often still be used, but at lower advance rates. Unlisted shares, property funds with restricted dealing and crypto assets are usually excluded.
Whatever the portfolio, the starting point is the same: what you hold, where it is held, who owns it and what you need the money for. Our in-house tax specialists can then work alongside your investment manager and advisers to make sure the borrowing fits your wider plans.
Why Clients Borrow Against Their Portfolios
A Lombard loan is usually a way to keep a long-term investment strategy on track while meeting a short- or medium-term need for cash. The reasons we see most often are:
Avoiding a forced sale — raising funds without selling investments at the wrong point in the market, or crystallising a capital gains tax liability.
Property purchases and bridging — funding a deposit, completing quickly on a purchase, or bridging the gap until a sale or mortgage completes.
Meeting tax bills — paying inheritance tax, capital gains tax or self-assessment liabilities on time while investments stay in place.
Business and investment opportunities — providing capital for a business, a private investment or a co-investment that needs funds quickly.
Refinancing — replacing a more expensive facility, or one from a lender that no longer suits your circumstances.
Standby liquidity — keeping an undrawn facility in place so funds are available at short notice, paying interest only on what you use.
The common thread is speed and flexibility. Once a facility is set up, funds can often be drawn within days, and lenders are generally less concerned with what the money is used for than a mortgage lender would be.
What Lenders Need to See
A Lombard lender is lending against the portfolio, so its first questions are about the assets: what they are, how liquid they are, how volatile they are, and whether it can take valid security over them. It will then want to know who owns the portfolio, that the source of wealth is clear and legitimate, and how and when the loan will be repaid.
Each holding is given a loan-to-value, sometimes called an advance rate or lending value. The figures below are indicative only and vary by lender and by holding.
