# Unlocking Liquidity Through Share Pledging

Case study · Singapore · Published 2023-07-26 · Updated 2026-06-24 · By Rikvin Capital

> Location: Singapore Market Value: $2,000,000 Loan Amount: $500,000

## Deal summary

| | |
| --- | --- |
| Asset Type | Shares Pledge |
| Locations | Singapore |
| Loan Amount | $500,000 |
| Loan-to-Value | 25% |
| Market Value | $2,000,000 |
| Duration of Loan | 6 Months |
| Payment Schedule | Monthly |
| Completion Time | 1 week |

**Navigating the complexities of finance often calls for innovative, bespoke solutions.**

Recently, we had the opportunity to assist a client in such a scenario, highlighting the power of leveraging existing assets to meet immediate financial needs.

Our client, a private equity investor based in Singapore, required an immediate infusion of funds. Instead of resorting to traditional financial routes or divesting valuable investments, the client preferred a more tailored approach: securing a short-term loan by pledging shares they held in a private company.

As experts in asset-backed financing, we promptly initiated a comprehensive assessment of the shares’ market value and associated risks. The shares that the client chose to pledge were worth $2,000,000. After a thorough evaluation, we agreed on a loan amount of $500,000 maintaining a conservative loan-to-value ratio of 25%.

- **Location:** Singapore
- **Market Value:** $2,000,000
- **Loan Amount:** $500,000
- **Loan-to-Value:** 25%
- **Duration of Loan:** 6 Months
- **Payment Schedule:** Monthly
- **Asset Type:** Shares Pledge
- **Completion Time:** 1 week

Our commitment to efficient execution ensured that the process, from initial consultation to the disbursement of funds, was completed within a week. The loan had a duration of 6 months, with a monthly repayment schedule providing the client with the necessary liquidity while maintaining a manageable commitment.

This case study underscores the viability of short-term asset-backed financing as an alternative to conventional financing methods, particularly when an immediate cash injection is required. By utilizing their shares as collateral, the client was able to meet their financial needs without parting from a potentially profitable long-term investment.

At Rikvin Capital, we take pride in our ability to deliver fast, customized financial solutions that cater to our clients’ unique circumstances.

## Frequently asked questions

### Can I borrow against shares I hold in a private company?

Yes. The case here lent $500,000 against $2 million of private-company shares (25% loan-to-value) in 1 week. We accept private-company shares where the underlying assets are well-documented and there is a credible exit. Public-listed shares attract higher loan-to-value because they are more liquid.

### How do you value private-company shares for lending?

We look at recent valuations (audit, last funding round, comparable transactions), the company's underlying assets and net worth, any restrictions on transfer, and the borrower's overall position. Private shares are conservatively loan-to-valued (typically 20 to 30%) given the lower liquidity.

### Can I avoid selling my investments to raise short-term cash?

Yes. That is exactly what a share-pledge loan does. You retain ownership and the upside on the shares, while accessing immediate cash against their value. The PE investor here used this to avoid divesting valuable holdings during a short-term cash-flow event.

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