While downturns may send shockwaves through public markets, they also quietly open windows for strategic, well-collateralized lending. Bear markets create dislocation—and with it, opportunity. For investors, family offices, and private clients with strong collateral, this is often when the best terms are available.
Why Bear Markets Work for Lenders
Bear markets depress valuations, reduce leverage, and increase demand for liquidity. Borrowers may face margin calls, delayed exits, or frozen funding rounds—yet still hold high-value assets. For lenders who can act quickly and discreetly, this creates a high-quality lending environment with favorable risk-return dynamics.
Collateral Strength Matters More Than Ever
During downturns, lenders grow more selective. Lending against illiquid or volatile assets becomes difficult—unless backed by robust underwriting and proper structure. This is where Originate Partners focuses: non-recourse loans, often backed by:
- Public equities, including single stocks and pre-IPO shares
- Real estate in prime jurisdictions
- Digital and fine art assets
- Business equity or SPV shares with valuation support
Each loan is built around the asset—not the borrower’s income statement—making it flexible, discreet, and often faster to close than traditional financing.
A Tactical Tool for HNWIs and Family Offices
We work with clients who want to:
- Unlock liquidity without selling at a loss
- Avoid triggering capital gains
- Meet cash needs for tax, investment, or restructuring events
Rather than sell in a down market, smart clients collateralize assets and wait for a better cycle.