OakNorth Provides m Credit Facility to Paloma for Business Expansion Private Equity News UK

OakNorth Provides £45m Credit Facility to Paloma for Business Expansion

As first reported by React News, OakNorth Bank has provided a £45m revolving credit facility (RCF) to Paloma Capital, a private equity real estate investor.

The neobank for entrepreneurs, by entrepreneurs, has completed the capital call facility for the leading entrepreneurial investor.

OakNorth Provides m Credit Facility to Paloma for Business Expansion

The RCF will be used to support Paloma Capital’s continued growth and investment in the UK real estate market.

The credit facility provided by OakNorth Bank will enable Paloma Capital to access the necessary funds to continue its investment activities in the UK property market.

The private equity real estate investor has a track record of success in the sector, having completed a number of high-profile deals in recent years.

The RCF will provide Paloma Capital with the flexibility it needs to continue investing in the UK real estate market, which has shown strong resilience in the face of economic uncertainty.

OakNorth Bank’s commitment to supporting entrepreneurs and businesses has been demonstrated through its provision of this credit facility to Paloma Capital.

As a neobank that understands the needs of entrepreneurs,

OakNorth Bank has been able to provide the necessary support to enable Paloma Capital to continue its investment activities in the UK real estate market. The completion of this capital call facility is a testament to OakNorth Bank’s commitment to supporting the growth of businesses in the UK.

Oaknorth’s Business Model

OakNorth is a UK-based neobank that provides loans to small and medium-sized businesses. It was founded in 2015 by Rishi Khosla and Joel Perlman, who saw a gap in the market for a bank that could provide bespoke lending solutions to entrepreneurs and business owners.

Unlike traditional banks, OakNorth does not rely on deposits to fund its lending activities. Instead, it raises capital from institutional investors and high-net-worth individuals. This allows it to be more flexible in its lending criteria and to provide faster access to funding than traditional banks.

OakNorth’s lending activities are focused on the UK market, with a particular emphasis on the SME sector. It offers a range of loan products, including term loans, revolving credit facilities, and asset finance. Its loans are typically secured against property or other assets, and it takes a data-driven approach to underwriting, using machine learning algorithms to assess credit risk.

Despite being a relatively new entrant to the UK banking market, OakNorth has already established itself as a major player.

It has lent over £8.5bn to UK businesses since its launch and has been profitable since its second year of operation. Its success has been driven by its focus on the SME sector, its data-driven approach to underwriting, and its ability to provide fast and flexible access to funding.

Overall, OakNorth’s business model is based on providing bespoke lending solutions to UK businesses, using a data-driven approach to underwriting and raising capital from institutional investors and high-net-worth individuals.

Its success to date has made it a major player in the UK banking market and a popular choice for entrepreneurs and business owners looking for fast and flexible access to funding.

Paloma Capital’s Business Model

Paloma Capital is a private equity real estate investor established in 2015 and wholly owned by its founding partners Joe Froud and Jack Pitman. The company has raised approximately £600 million of capital from investors in Europe, the Middle East and North America, and this capital is wholly discretionary allowing it to rotate across different strategies and sectors.

Paloma Capital’s business model is centred around value-add funds, which are designed to generate higher returns by actively managing assets to create value. The company focuses on multi-let urban industrial, logistics schemes, trade counter, open storage, self-storage, EV charging assets, and value-led retail warehouse investments.

Paloma Capital’s opportunistic strategy involves targeting underperforming assets, repositioning them through active management, and selling them at a profit. The company’s income-producing assets are designed to generate a steady stream of cash flow for investors, while its value-add funds are designed to create higher returns through active management.

Paloma Capital’s capital investment strategy involves investing in assets with small lot sizes, which are often overlooked by larger institutional investors. The company’s limited partnerships allow it to work closely with high-net-worth individuals and family offices, providing them with access to the fund finance market.

Paloma Capital’s asset management strategy involves active management, which includes identifying and executing asset management initiatives, leasing and rent reviews, and refurbishment and redevelopment. The company’s expertise in value-add investments allows it to unlock hidden value in assets, providing investors with attractive returns.

In summary, Paloma Capital’s business model is centred around value-add funds, which are designed to generate higher returns through active management.

The company focuses on multi-let urban industrial, logistics schemes, trade counter, open storage, self-storage, EV charging assets, and value-led retail warehouse investments. Paloma Capital’s capital investment strategy involves investing in assets with small lot sizes, and its asset management strategy involves active management, which includes identifying and executing asset management initiatives, leasing and rent reviews, and refurbishment and redevelopment.

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