Lululemon Athletica Inc. founder Chip Wilson has pledged shares in the sportswear company for the third time in just over a year, securing access to more than $500 million without selling stock.
The billionaire, who established the yoga-inspired apparel brand nearly three decades ago, has structured arrangements with several global banks that allow him to maintain his voting influence while generating liquidity for personal use.
According to a regulatory filing dated 11 August, the Royal Bank of Canada (RBC) agreed last week to lend Wilson up to $315 million, partly backed by Lululemon shares.
The agreement adds to two earlier deals: one in January with Citigroup Inc., which provided roughly $122 million against about 330,000 Lululemon shares, and another in 2023 with Goldman Sachs Group Inc., which extended up to $200 million through a margin loan secured by stock.
Wilson’s filings do not disclose whether he has drawn on the loans or how he plans to deploy any funds.
Preserving influence and potential gains
Such loan structures are common among the ultra-wealthy, who frequently use publicly traded equity or other assets as collateral to access financing.
Loans of this type are often tailored to individual needs and typically incur lower borrowing costs than the tax liabilities that would result from selling shares.
For Wilson, the arrangements also ensure he can benefit from any rebound in Lululemon’s share price.
The company’s stock surged during the pandemic, supported by strong demand for athleisure, but has since dropped more than 45% in 2025 as sales growth slowed and store traffic weakened.
By leveraging shares rather than selling them, Wilson maintains his ownership stake and voting power, while retaining the upside potential of a recovery in the company’s valuation.
The three deals are structured differently. Goldman Sachs’s margin loan is backed solely by Lululemon shares.
The RBC facility, however, uses both Lululemon stock and additional unspecified collateral.
Citigroup’s arrangement is more complex: Wilson may either sell shares directly to the bank or collect a loan balance repayable in 18 months, using either shares or cash.
There are also specific terms that allow him to capture potential share price gains during the period.
In disclosing the RBC and Citigroup agreements, Wilson also reported the termination of two older share-backed loans that had provided him with more than $100 million in access.
Personal circumstances and philanthropic focus
At 70 years old, Wilson suffers from a form of muscular dystrophy for which there is no cure.
He has publicly pledged $100 million towards research into the condition and has pursued experimental therapies aimed at slowing its progression.
In a 2023 interview with Bloomberg Businessweek, Wilson said that ultra-wealthy individuals motivated by survival rather than financial gain are capable of creating more effective funding and research organisations than those currently in existence.
His personal fortune is valued at $7.9 billion, according to the Bloomberg Billionaires Index.
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