# Nodem Completes $50 Million Preferred Equity Facility for a Multi-Asset Holding Company

Replacing an expensive cash-pay bank facility with a PIK-based preferred equity structure eliminated a $3 million annual cash drain and freed capital for new investments.

## Transaction Overview

Nodem Capital completed a $50 million preferred equity facility to a holding company controlled by a family office. The borrower manages a mixed portfolio of private equity fund interests, direct co-investments, private credit allocations, and a small allocation to venture capital.

The family had an existing bank facility with a fixed cash interest rate of approximately 6.5%, creating an annual cash servicing burden exceeding $3 million. This cash was being sourced by liquidating portfolio positions the family would have preferred to hold. Nodem's PIK-based preferred equity structure replaced the bank facility entirely, eliminating the cash drain while maintaining portfolio integrity.

## Why This Structure

Bank facilities impose cash-pay interest that creates a fundamental mismatch with illiquid portfolios. The underlying assets may not generate distributable cash for years, yet the loan demands monthly or quarterly payments. A PIK structure resolves this by capitalising interest over the facility's term, with repayment triggered by actual liquidity events. The family office preserved over $3 million per year in cash that is now being redeployed into new primary commitments.

## Facility Details

- Facility size: $50 million

- Borrower: Multi-asset holding company (family office controlled)

- Collateral: PE funds, co-investments, private credit, venture capital

- LTV: Below 25%

- Structure: Preferred equity with PIK return

- Duration: 4 years, extendable

- Use of proceeds: Refinancing existing bank facility; cash preservation

- Annual cash saving: $3 million+ (eliminated cash-pay interest)

## About Nodem Capital

Nodem Capital is a specialist NAV lender providing portfolio-backed credit facilities, typically $20 million to $100 million and above, to family offices, GPs, and private funds. Nodem is authorised and regulated by the Financial Conduct Authority. For enquiries, contact abranton@nodem.com or visit nodem.com.