Origami Capital makes $35 million Illiquid Asset Loan to support recapitalization of family office’s privately held financial services assets
Chicago, IL, October 27, 2020 – Origami Capital Partners, a private equity firm that invests in complex special situations across asset classes, structured and closed a $35 million Illiquid Asset Loan to a family office to support the recapitalization of a financial services business and several other assets. The loan, secured by a diversified pool of illiquid private assets across multiple businesses and real property, helped the borrower consolidate ownership and delivered critical working capital for the primary operating entities within the portfolio.
“This transaction highlights Origami’s ability to underwrite highly complex, interlocking businesses and situations to support our partners’ objectives” said Matt Miller. “We feel honored to work as trusted partners with our borrower and look forward to supporting their goals prospectively. The delivery of the capital aligns squarely with Origami’s mandate to offer customized liquidity solutions for investors, entrepreneurs, and families that own private assets.”
As described further below, the loan forms a part of Origami’s Illiquid Asset Lending strategy. In making the loan, Origami underwrote multiple disparate assets, including an operating business, minority private equity positions, legal claims, and real estate, to craft a non-dilutive loan that acted as an alternative to raising dilutive equity.
Illiquid Asset Lending
Origami Capital Partners has acquired, invested in, and lent on illiquid and complex assets for over a decade. As banks retreated from certain parts of the market due to regulatory requirements or for “strategic business reasons”, a void emerged for owners of private assets wishing to raise capital on a less dilutive basis.
To address this gap, Origami created an Illiquid Asset Lending product to meet private owners’ liquidity needs. The strategy forms a core part of Origami’s investment strategy. Product highlights include:
- Investment Size: $10 to $50 million
- Target Borrowers: High-net-worth owner/entrepreneurs, family offices, and management companies of alternative asset managers
- Collateral: Portfolios of illiquid assets, with a focus on private company stock (majority and minority equity), real asset equity, LP commitments, litigation assets, and other esoteric and financial assets
- Term: 3 to 5 years
- Use of proceeds: Flexible at the HoldCo or OpCo level, including recapitalizations, acquisitions, balance sheet liquidity, and deleveraging
- Industry and asset class agnostic
For specific transaction inquiries contact:
About Origami Capital Partners
Founded in 2008, Origami Capital Partners manages private capital that offers structured, creative approaches to complex challenges. Origami’s extensive experience navigating complicated situations helps to solve capital structure, liquidity, and follow-on capital issues for its deal partners. Origami evaluates and invests across asset classes and sectors, including real estate, credit, technology, and financial services. Headquartered in Chicago, Illinois the firm manages committed institutional capital and is a registered SEC investment advisor.