As a large stakeholder in a publicly traded company, you may require investment solutions that improve liquidity. We recognize that your investment options may at times seem restrictive, perhaps even to the extent of preventing optimal investment diversification. Through our private banking services and in partnership with Scotia Capital, we offer equity monetization strategies to qualifying individuals.

How It Works

An equity monetization strategy effectively restructures your equity holding, allowing for improved flexibility. It is a diversification tool which enables qualified investors to reduce exposure to single, publicly-listed equity positions in a tax-efficient manner without disposition of the stock. The value of your investment is hedged for a specified term at a specified price and your account is structured according to your unique circumstances.

While hedging your investment for a specific term and price, it can also be used as collateral for a fixed rate loan, providing an efficient method to access funds.

The Advantages of Equity Monetization

The main advantage of an equity monetization strategy is elimination of the stock market risk in your equity holdings without the usual drawbacks associated with selling the securities outright. And since you retain legal title of your stock, you maintain voting rights and may continue to receive potential future dividends from your securities. You are also able to obtain cash proceeds from your stock today while deferring taxes until maturity of the hedge, at which time the strategy can be rolled over for further deferral.

While you benefit from any price appreciation of your shares during the term up to the forward price, you are fully hedged against any price depreciation of the shares throughout the term of the transaction.