Security Agent
In secured financing, the security package is the ultimate source of recovery for lenders. The Security Agent, often acting as a Security Trustee, is the entity entrusted with holding this collateral on behalf of the secured parties. It is a role that demands diligence in peacetime and decisive action in the event of default, requiring the agent to enforce the security and realise value for the benefit of the lenders.
Our Role
Aether acts as an independent Security Agent for a broad range of financing transactions, from syndicated loans to complex structured finance and unitranche facilities. We hold security interests over all types of assets on behalf of and for the benefit of the lender group.
Prior to any default, our role is to act as the legal holder of the security. We ensure that the collateral—whether it consists of shares, real property, bank accounts, or intellectual property—is correctly pledged and that the security is properly perfected and registered in all relevant jurisdictions. We may hold physical collateral, such as share certificates, in our secure facilities.
Upon an event of default and upon receiving instruction from the requisite majority of lenders, we are responsible for enforcing the security package. This involves taking all necessary steps to take control of the collateral, manage its disposal, and distribute the net proceeds to the secured parties in accordance with the agreed priority of payments.
Conflict-Free Enforcement
A Security Agent that is also a lender within the syndicate may face significant conflicts of interest when enforcement becomes necessary. Its own commercial considerations or relationships may temper its willingness or ability to act decisively. Aether FS is a truly independent agent with no competing interests. Our duty is solely to the secured parties as a whole. We act exclusively on their instructions, ensuring that the enforcement process is managed with unimpeachable impartiality and a single-minded focus on maximising recoveries.
Cross-Border Expertise
Modern security packages are often complex and multi-jurisdictional. Enforcing such security requires a sophisticated understanding of local laws and procedures. Our team has the global expertise to manage intricate collateral pools and to retain and direct local counsel effectively, ensuring that enforcement action is swift, legally robust, and coordinated across all relevant jurisdictions.
Confidential Consultation
To discuss the appointment of a robust and independent Security Agent for your financing, please contact us.