Investment Archives

Beyond the Banks: Your Guide to Securing High-Value Private Credit

Written by Joesph Patterson on December 18, 2025. Posted in News & Reports. Leave a Comment

Securing Debt Financing for multi-million-pound Capital Projects—such as infrastructure development, major acquisitions, or large-scale corporate expansion—often exceeds the risk appetite or structural flexibility of traditional commercial banks alone.

For executives leading these high-value projects, the key to successful Capital Raising often lies beyond traditional banking, in gaining access to the exclusive world of Private Credit and Institutional Investors.

The Rise of Private Credit

Private Credit refers to debt financing provided by non-bank financial entities, such as specialised private debt funds, asset managers, pension funds, and insurance companies. This market has exploded as Institutional Investors seek higher yields and customised loan terms unavailable in public markets.

For complex Capital Projects, Private Credit offers distinct advantages over conventional bank loans:

Customisation: Terms, repayment schedules, and covenants are tailored directly to the project’s unique cash flow and structure.
Scale: Institutional Investors are prepared to fund large, illiquid transactions that banks might pass on.
Flexibility: Private lenders are often more focused on the long-term project viability and the quality of the security package than on short-term corporate liquidity metrics.

Three Paths to Finding Institutional Investors

Finding the right Private Credit fund that matches your project’s geography, industry, and risk profile is a specialised challenge.

1. Direct Outreach (Challenging)

Attempting to connect directly with Institutional Investors—such as sovereign wealth funds or major pension funds—is often challenging and time-consuming, with low conversion unless you have an established relationship. These organisations rely on highly vetted pipelines and typically screen out unsolicited proposals.

2. Generalist Advisors (Slow & Costly)

Using non-specialised investment bankers or corporate finance advisors can be slow. While they provide access to Private Credit, their approach is often generic, requiring lengthy due diligence and expensive structuring fees before placement can even begin.

3. The Security-Led Placement (The IntaCapital Swiss Solution)

For many high-value, security-sensitive deals, transforming the borrower’s risk profile before approaching the lender can be the most efficient path. This is achieved through Collateral Transfer.

Risk Mitigation: We introduce a Bank Guarantee or SBLC via a Collateral Transfer facility, providing the lender with a high-grade security instrument. Lenders still perform their own credit and legal assessments, but the BG/SBLC significantly mitigates risk.
Network Access: Our core expertise in Capital Raising means we can place this collateral-ready loan package directly with our network of Institutional Investors who actively seek secure, yield-generating deals.

By leveraging this External Collateral, you significantly reduce the lender’s risk, allowing the focus to shift from the search for a lender to the security-backed placement of your Capital Projects loan.

Ready to Access Private Credit?

Don’t spend valuable time chasing elusive Institutional Investors. IntaCapital Swiss specialises in providing the necessary External Collateral to unlock Private Credit for major Capital Projects.

To streamline your high-value Debt Financing and accelerate your Capital Raising success, contact our experts today.

Bond Investors Edging Towards Emerging Markets

Written by IntaCapital Swiss on December 3, 2025. Posted in News & Reports. Leave a Comment

Investors in global bonds are eyeing a number of better-performing emerging markets, as they are currently a safer bet than their peers in the richer developed world, and some countries, such as South Korea, are delivering stronger returns. The strong performances seen in several emerging economies are due, according to experts, to governments cutting debt, improving their current account balances and getting to grips with inflation. Analysts also note that these economies have become attractive to bond investors due to a reversal of fiscal fortunes in industrial nations such as the Group of Seven* (aka the G7), where safe-haven status is eroding amid rising debt-to-output ratios.

*Group of Seven / G7 – This is an informal political forum for the leaders of seven advanced democratic economies, including Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Originally, it was known as the G8 until Russia was suspended in 2014 for the annexation of Crimea. The group meets annually to discuss and coordinate policy on major global issues such as economic governance, international security and climate change. The leader of the European Union (currently Ursula von der Leyen) has an unofficial seat at the table, enjoys all the privileges and is often dubbed the 8^th member.

Analysts predict that at the close of business in 2025, and in terms of annual bond gains this year, it is set to be the strongest for emerging markets since the Covid-19 pandemic. Investors have become really impressed with a number of emerging market economies as they are now, for the first time in seven years, demanding the smallest premium over treasuries in the sovereign dollar-debt market. Indeed, for several AA-rated issuers, the spread has declined to an impressive 31 basis points, which in today’s world is a record and data released shows that, since the end of last year, average local currency debt yields have been below that of treasuries.

Experts advise that the ‘Carry Trade’ ** has become an influential tool in investing in local currency emerging market bonds, where low-interest rate volatility has favoured investment in this asset class. Sovereign and local bonds are not the only beneficiaries of the carry trade; currencies have also benefited, such as the Egyptian pound and the Nigerian Naira, both delivering 20% returns year-to-date when funded out of US Dollars. However, as one moves along the emerging market credit curve, the risk-to-reward ratio increases exponentially. Emerging market experts advise that political instability and debt distress are constant threats in a number of these economies and can be found mainly in Africa and Latin America. Also, for serious capital to be deployed, investors look to those countries with a sovereign risk of AA.

**Carry Trade – This is a financial strategy whereby an investor will borrow money at a low interest rate and invest in an asset with a higher interest rate with a view to profiting from the difference (known as the interest rate differential). Whilst this is mostly done in the foreign exchange markets, it is also applied to commodities, bonds and other assets.

However, according to analysts, there has been a palpable change in investment strategy in the emerging markets arena, with investors looking to commit directly to these economies without using the carry trade due to key macro fundamentals moving into favourable positions. It has also been noted that in the face of global trade and geopolitical dislocations, emerging markets have been resilient and have preserved fiscal governance, including balance of payments sustainability, resulting in inflows into the fixed income market, all of which is expected to continue into 2026.

Financing a Super-Yacht with a Swiss Lombard Loan: A Simple, Step-by-Step Guide

Written by IntaCapital Swiss on September 3, 2025. Posted in News & Reports. Leave a Comment

A Lombard loan is a line of credit secured against your liquid investments—typically cash, bonds, equities, and sometimes funds—held at a Swiss private bank. Instead of selling investments to pay for the yacht (and potentially triggering taxes or missing future market gains), you borrow against the portfolio at a relatively low “Swiss bank rate” (a floating base rate plus a small margin). You then use that cash to buy the yacht outright (or to fund the deposit alongside a marine mortgage). Your portfolio stays invested; the bank just takes a pledge over it as collateral.

Think of it like a high-end “asset-backed overdraft”: flexible, discreet, and fast—provided your assets and documentation are in order.

Why people choose this route
– Preserve your investments: You don’t have to liquidate long-term holdings you like (or ones with embedded gains).
– Potentially low cost of funds: Swiss private banks often offer competitive pricing for well-diversified, high-quality portfolios.
– Speed and discretion: Credit lines can be arranged quickly for qualified clients with established relationships.
– Flexibility: Interest-only, bullet, or revolving structures are common. You repay when it suits your liquidity plan (bonus, asset sale, refinancing, charter income, etc.).

What the bank looks at
Swiss banks determine how much they’ll lend by assigning advance rates to each asset class:
– Cash and short-dated top-quality bonds: high advance rates.
– Investment-grade bonds and diversified bond funds: relatively high.
– Blue-chip equities and equity funds: moderate.
– Concentrated single-stock positions, small caps, illiquid or complex funds: lower or sometimes ineligible.

The bank blends these into a credit limit. For illustration only: a diversified, high-quality portfolio might support a 50–70% credit line; lower for riskier or concentrated holdings. The exact figures depend on the bank, the assets, and market conditions.

The moving pieces, kept simple
1. Open or use your Swiss custody account. Your investments are held at the lending bank or a custodian they accept.
2. Sign a pledge agreement. The bank takes security over the portfolio. You keep ownership and remain invested.
3. Get the credit line. The bank sets a limit in your chosen currency (EUR, CHF, or multi-currency) with clear margin rules.
4. Draw down for the yacht. Funds go to the sale escrow or directly to the yard/broker at closing.
5. Optional: Combine with a marine mortgage on the yacht to reduce the draw on your Lombard line.
6. Service the loan. You pay interest (often quarterly). Principal is repaid on your timetable, subject to the facility terms.
7. Stay within margin. If markets fall and collateral coverage shrinks, you may need to top up or partially repay (a margin call).

Taxes, title and practicalities
– VAT and import: Depending on where the yacht will operate and be flagged, you may owe VAT or use structured solutions for commercial operation. Get specialist advice early.
– Flag, class and mortgage: If a marine mortgage is used, the bank (or marine lender) will register a mortgage over the vessel with the flag state. This can sit alongside the Lombard pledge on your portfolio.
– Insurance: Full hull, machinery, P&I (liability), crew and charter cover (if applicable) are standard lender requirements.
– KYC/AML: Expect thorough source-of-funds checks—routine at Swiss banks.

Examples for a €55 million purchase
Example A: All-cash via Lombard (portfolio large enough)
– Portfolio: €120 million, diversified, conservative.
– Bank advance rate (illustrative): 60%.
– Credit line: €72 million.
– Draw: €55 million for the yacht; €17 million headroom retained.
– Interest cost: Suppose an all-in floating rate of, say, 2.2% per year.
– Annual interest: ~€1.21 million.
– Why this works: You keep the entire portfolio invested; the loan’s cost may be lower than the portfolio’s expected long-term return.

Example B: Split financing (Lombard + marine mortgage)
– Portfolio: €60 million, balanced; bank advance rate 55% → €33 million credit line.
– Structure: €25 million on the Lombard line, €30 million marine mortgage.
– Annual debt cost: ~€2.125 million.

Example C: Bridge-to-liquidity
– Scenario: Committed to buy, awaiting business sale in 12 months.
– Portfolio: €40 million, high-grade; bank advances €24 million.
– Repay after liquidity event.

Does it pay to borrow?
If expected after-tax portfolio returns exceed after-tax borrowing costs, leveraging can be sensible.

Additional costs
– Arrangement fees, legal fees, appraisal, insurance, VAT/import, operating costs (8–12% of yacht price per year).

Risk management
– Diversify collateral
– Keep liquidity buffer
– Match currencies
– Hedge rate exposure
– Plan exits

Checklist
1. Define budget and usage
2. Assemble team early
3. Prepare portfolio
4. Obtain term sheet
5. Coordinate escrow and closing
6. Lock in insurance and flag
7. Post-closing housekeeping

Bottom line
Using a Swiss Lombard loan for a €55 million super-yacht lets you keep your investments working while unlocking liquidity to close the deal. For those with large, diversified portfolios and good risk management, it can be a discreet, efficient solution.

Gold Hits Record High December 2023

Written by IntaCapital Swiss on December 7, 2023. Posted in Industry, News & Reports. Leave a Comment

This week, gold touched an all-time high of $2,135.39 as the metal continued on a rally which started in early October of this year and has seen the metal gain 16%. Gold last reached a record high back in August 2020, when the Covid-19 pandemic sparked a rush into gold as a safe haven. As the world becomes more volatile, the old adage of gold being a safe haven tends to make it increase in value.

This of course can be seen in the continuing war between Russia and Ukraine, as well as the continued conflict between Israel and Palestine, providing a geopolitical risk as a reason to invest in gold. Furthermore, the dovish stance being taken on interest rates by the Federal Reserve in the United States has given the gold price some staggering momentum.

When the Federal Reserve first started hiking interest rates, assets such as bonds became more lucrative for investors due to the higher yields on offer. Consequently, the demand for gold lessened due to the fact the metal carries no interest rate thus diminishing investor appeal. Conversely, when interest rates come down the appetite for gold increases, and the prospect of easing money supply and reducing interest rates appears to have been confirmed by recent comments coming out of the Federal Reserve.

Analysts are advising that gold’s surge towards a record high was aided by Federal Reserve Governor Christopher Weller, who indicated that interest rates will not have to be increased to get inflation to return to 2%. Further dovish remarks followed from the Chairman himself, Jerome Powell, who said the central bank’s policy rate was now well into restrictive territory, which suggests that rate increases have now concluded.

This potential end to rate hikes will prove beneficial to gold, as the metal tends to struggle under higher rates whilst benefiting from lower rates. Therefore, as mentioned above, gold is not only rising from geopolitical risks, (also 41% of the world’s population will go to the polls next year,) but from traders aggressively pricing in rate cuts from March 2024. Indeed, experts advise that the swaps markets are now predicting a better than even chance of a rate reduction in March 2024, and are pricing in a cut in May of the same year. The recent decline in the value of the dollar has also spurred investor interest in gold as the metal is usually valued against the greenback.

Experts suggest that gold may well go higher as there are many investors still on the side-lines, which increases the possibilities of further spikes/rallies in gold. Previous gold bull markets have been driven by investors using exchange-traded funds or ETFs*, but analysts advise that investors in the mechanism have seen sellers for much of 2023 down 20% from the high of 2020.

*Gold ETFs – This is a very popular way for investors to buy gold as they do not have to go through the process of owning the metal. Gold ETFs enjoy good liquidity and investors can buy and sell shares of the ETF on the stock exchange. When a purchase of shares is made the fund manager must buy the equivalent amount in physical gold. This not only will increase the price of gold but can act as a signal to the broader market that demand is increasing thereby impacting investor sentiment.

Furthermore, experts advise that the current price of gold (down at the time of writing form the high of USD2,135.39 to USD2019.17) may well be underpinned by the continuing support of purchases by governments and central banks. For example, Poland has bought circa 300 tonnes of gold in the past few years falling in line with the Eurozone average of gold to GDP ratio. This is a covert requirement* and as such analysts suggest Poland will buy an additional 130 tonnes of gold.

*Covert Requirement – is referred to because some central banks within the Eurozone (e.g., Belgium) refuse to be transparent with regard to the gold reserve alignment on the grounds of professional secrecy.

Market sentiment appears to favour a bull run in 2024 as experts predict that the Federal Reserve will cut US Dollar interest rates four times in 2024. However, if inflation figures do not match market sentiment and rates are put on hold or even hiked once more, traders and investors will not hesitate to cut their positions and gold will fall back to weaker levels.

Tag: Investment