Investing using SBLOC

[Tarun Bansal]

Hello,

I've a concentrated stock position and looking to diversity out. I however do not want to sell stocks due to tax gains. Does anyone think it's a crazy idea to borrow against a securities based line of credit (SBLOC), to invest? I'm getting one with a variable rate of ~4%. The IRR for a target syndication investment is ~14-16%. It seems worth the risk. I just wanted to hear from this forum to learn.

Thank you for inputs!