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If the desired investment target imposes minimum ticket restrictions, the creation of a wrapped standardized solution easily investable and eligible for custody enables your client to act as lead investor and therefore ‘promoter’ of the investment, and then more easily attract co-investors

It may be easier for your clients who own real assets to obtain Lombard credit from her/his bank if a security, which is collateralised to the real assets she/he owns, is posted as collateral rather than the assets themselves, given that it would be easier for the bank to seize the securities and re-sell them in case of a default on the loan payments by the borrower than it would be to seize the underlying real assets, especially when these are numerous and spread in various geographical locations

Securitizations are also normally valued periodically by an external valuer, making the value of the pool of underlying assets more reliable and less subjective, giving sufficient comfort to the credit institution of the true value of the collateral given for the loan they granted. 

The debt securities issued by the securitization vehicle, which can securitize your client’s investments, could be acquired by third-party investors who may be experts in the underlying asset and may wish to benefit from the return such assets may generate (through a ‘profit participation loan’ for instance) or are confident of the reliability of underlying asset as a ‘collateral’ to a fixed interest payable by the borrower for the funding received.

Thus, by assisting assist your client with the ‘wrapping’ of their illiquid assets and sale of the issued debt securities, you could help ‘free up’ liquidity that she/he may wish for you to reinvest in other instruments, if suitable.

Even if traditionally family offices have opted for the creation of a trust or a foundation to hold the family’s assets, the securitization of at least some of their real assets, such as private equity participations, real estate, artwork, precious metals, vehicles (vintage cars, planes, yachts, etc.) and others may facilitate succession planning. 

In fact, family members owning debt securities resulting from the securitization, under a profit-participation agreement, of the assets owned by their family can more easily dispose, if not of the ownership of the underlying assets themselves, at least of the returns (including negative returns) generated by such assets.

Specifically, this feature allows the family office to easily fractionalize asset ownership among the individuals belonging to the family and to redistribute them, where necessary, without any administrative delay or complexity. 

Investing in a security is operationally seamless, and far less complex that investing directly in a non-listed illiquid alternative asset, saving precious time and resources for your team.

Yooro’s operations team is very knowledgeable on the ins and outs of all the moving parts of such a structure and will take ownership of such operational complexities. One less worry for you.