Equities First Holdings, LLC is a global alternative lender which is headquartered in Indianapolis, Indiana. The company was founded in 2002 by Al Christy, Jr., who serves as its President and Chief Executive Officer. Equities First Holdings clients are businesses and high net worth individuals who are seeking capital outside of a traditional lending source.The alternative lending that Equities First Holdings provides is based on their assessment of the businesses risk as well as what their analysis sees as the future performance of the company’s stocks and bonds. If they approve the lending request they provide a lower interest rate than a traditional lender would provide, as well as better financing terms, in exchange for stock in the company.
Equities First Holding’s can either hold the stock through the end of the loan or they can sell the stock if that makes more financial sense.The capital that the business gains through the loan can be used for many things. Some of the businesses use it to expand their business through hiring employees or reaching new markets. Other ways the capital is used can include acquiring new facilities, technology, or additional products to sell.In July 2016 Al Christy, Jr. was interviewed by Market wired an he said that the market for stock-based loans has been rapidly growing over the past few years.
He said they’re popular because they provide a hedge against investment risk if the value of their stock drops. He said that people and businesses also see them favorably because there are no restrictions on how the capital is used. They are also non-recourse which means the borrower can walk away from the loan at any time.Since being founded Equity First Holdings has expanded to include offices in Sydney, Perth, London, Singapore, Hong Kong, and Bangkok.