Lombard Lending: Liquidity Without Selling Your Portfolio

A purchase does not have to cost you your positions. A Lombard credit line is financing secured against a securities portfolio: the portfolio stays invested, and the capital arrives without unwinding what you have built.

We structure and coordinate Lombard facilities from €1M to €200M, at up to 70% of portfolio value depending on the transaction and the collateral, with an indicative answer typically within five working days. Facilities are arranged with traditional banks, family offices and credit institutions across Europe.

Typical situations

Acquiring real estate without liquidating an investment portfolio
Covering a purchase while other funds are committed or in transit, without a separate bridge facility
Releasing liquidity for a business or co-investment opportunity
Deferring capital gains and avoiding strategy disruption from a forced sale
Combining a conservative mortgage with a Lombard line to spread collateral

What determines the terms

The advance rate depends on the composition, diversification, liquidity and currency of the portfolio, and on the lender’s criteria. Concentrated or illiquid positions reduce it; diversified, liquid portfolios support the upper range. The figures on this page are indicative, never automatic.

What happens when the portfolio falls

A margin call is a request to restore the ratio, and it is normally met with cash, additional collateral or a partial repayment. It is not, however, a promise that the portfolio will never be sold. Lombard documentation gives the lender a discretionary right to liquidate the pledged assets if the position is not restored within the period the facility allows, and in a fast market that period can be short. This is why the sizing matters more than the headline percentage: a facility drawn well below the maximum leaves room to absorb a fall, and one drawn at the ceiling does not.

A Spanish property, acquired without selling a €3M portfolio

An investor held a diversified €3M portfolio with a Luxembourg financial institution and wanted to acquire a Spanish property for €1.5M. Selling part of the portfolio would have triggered capital gains and disrupted a long-term investment strategy.

Montclare structured a Lombard credit line secured by the portfolio. The bank applied a 60% advance rate — a maximum capacity of €1.8M — and the client drew €1.5M to complete the acquisition.

OUTCOME

The portfolio remained fully invested, continuing to generate dividends and interest. The financing was integrated into the client’s wealth structure, with repayment planned from rental income and future distributions.

A mortgage and a Lombard line, combined

A European family office needed financing to expand its real estate portfolio, but did not want to concentrate all debt on a single asset. Alongside Spanish property, it held a €5M financial portfolio in Luxembourg.

Montclare split the transaction between a conservative mortgage on the property and a Lombard line secured by the financial portfolio. The structure spread the collateral across two asset classes and avoided an excessive loan-to-value on the property.

OUTCOME

The client obtained the liquidity required, kept the financial portfolio invested, and reduced the refinancing risk of relying on a single source of debt.

Cases are presented in anonymised form to protect client identity. Montclare lends from its own funds in selected transactions and, in all other cases, structures the transaction, prepares the file and coordinates financing with authorised institutions.

Is a Lombard facility right for your situation?

Tell us about the portfolio, the purchase and the timing. We return an indicative view before you approach any bank.

Request a Financing Review

Montclare Capital Financing is not a bank and does not take deposits. In selected transactions we lend from our own funds to companies and investment vehicles, never to consumers; in all other cases financing decisions are made by authorised third-party providers. Figures are indicative and depend on the transaction.

Lombard Lending