Strategic Liquidity: Secondaries, CVs, NAV Loans & Recaps

Client Overview

Investor: Global secondaries and structured equity fund
Target Company: Growth-stage cybersecurity SaaS platform providing advanced data-centric security solutions
Industry: Cybersecurity, data security, information rights management
Geography: Headquartered in Asia with a large U.S. customer base

Situation
While conducting a cybersecurity-focused search for a separate client, we identified a software company facing a unique crossroads: it had strong customer traction and a growing market, but it struggled to raise fresh capital at a valuation investors found reasonable. Complicating matters, the company had a cluttered cap table with legacy VC investors resistant to dilution or exit. The banker running the raise was marketing a larger primary round but faced limited investor interest due to valuation concerns.

Challenges

• Outdated cap table with early VCs blocking new investment
• High valuation expectations that made the marketed primary round unattractive
• Cross-border operational complexity requiring redomiciling to the U.S.
• Urgent need for growth capital to keep pace with market opportunities

Basin Lake’s Role

• Identified the opportunity as a better fit for a secondary + primary capital structure rather than a straight equity raise
• Consulted directly with the banker to realign strategy toward a hybrid solution
• Introduced the banker and company to a specialized secondaries investor experienced in founder-led and VC-backed situations
• Guided discussions on structuring the transaction, valuation expectations, and the complexities of moving the company’s domicile to the U.S.

Solution & Process

• Structured a deal combining approximately 50% secondary capital (to clear out legacy VC positions) and 50% primary capital (to fund growth initiatives)
• Helped the investor assess the redomiciling requirements and plan around cross-border legal and tax complexities
• Managed valuation conversations and expectations between the company, banker, and investor, keeping alignment despite geographic and structural challenges
• Supported the process through closing, ensuring steady communication and momentum

Outcome

• Investor closed an investment of around $30M, split evenly between primary and secondary capital
• The transaction cleaned up the cap table and provided the company with fresh funds for growth
• Post-close, the business accelerated hiring, expanded go-to-market execution, and significantly improved its growth trajectory

Key Takeaways
✅ Recognized when a struggling primary-only raise could succeed as a hybrid secondary-primary transaction
✅ Enabled a cleaner ownership structure and provided critical growth capital
✅ Navigated redomiciling challenges and cross-border transaction complexities
✅ Demonstrated expertise in bringing actionable, creative solutions to growth-stage technology companies