- Founded in May 2015, the Fund has completed over 350 loans and has consistently delivered positive returns for investors since launch;
- Loans are originated, serviced and actively managed by RAW Capital Partners, a Guernsey based investment manager;
- OakNorth Bank completed a £20m Revolving Credit Facility with the Fund in 2019. The increased facility takes the total liquidity line to £40m;
- The loan is a demonstration of OakNorth Bank’s growing capabilities and expertise in the funds finance space with other clients, including Hilltop Credit Partners and Bluegem Capital Partners.
OakNorth Bank – the UK bank powered by OakNorth – has increased an existing facility by £20m with RAW Mortgage Fund, a specialist fund providing buy-to-let property loans against residential real estate in the UK.
Founded in May 2015, the Fund is run by RAW Capital Partners, the Guernsey-based innovative asset management company. The Fund has completed over 350 loans since launch at an average loan to valuation ratio of only 47%. Led by Tim Parkes and Richard Avery-Wright, the Fund has been able to provide very consistent returns to investors, provided from the interest payable on mortgage loans, since launch. It achieved a net return for institutional investors of 4.43% in 2020. The Fund had strong loan book performance throughout 2020, and has a strong pipeline for 2021, despite the ongoing challenges being presented by the pandemic. It will use the facility from OakNorth Bank to lend ahead of investor subscription and retain headroom for potential redemptions
Tim Parkes, Managing Director and Lead Fund Manager, RAW Mortgage Fund, said: “Throughout 2019 and 2020, we made several key hires, including a Head of Distribution, Head of Operations and a CFO – considerably increasing the size and experience of our senior team. In addition to this, we’ve continued to invest in process automation, adding new functionality that’s helped us maintain our speed and efficiency as we’ve scaled. We will continue to scale our team and processes in line with the envisaged growth of the Fund and are grateful for OakNorth Bank’s continued support. Since we completed the initial part of this transaction together, Mo and the team have done several funds finance deals, so their depth and breadth of expertise in this space continues to grow.”
Mohith Sondhi, Senior Director, Debt Finance at OakNorth Bank, added: “Both Tim and Richard have over 30 years’ experience in financial services and over the last few years, have made strategic investments in both their people and processes. This experience and investment has clearly paid off as the Fund had strong loan book performance throughout 2020, and has a strong pipeline for 2021, despite the ongoing challenges being presented by COVID-19. Having provided the Fund with the initial £20m facility two years ago, we saw this as an opportunity to increase our support as the Fund pursues ambitious growth plans with regards to its assets under management.”
ENDS
Notes to editors
About OakNorth Bank plc
OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £50m) to fast-growth businesses and established property developers / investors. It has debt finance teams in London, Manchester, Bristol, Birmingham, Leeds and East Anglia.
Since its launch, the bank has:
• Lent over £5bn, directly helping with the creation of over 17,600 new homes and almost 22,500 new jobs in the UK;
• Raised deposits from c.175,000 savers;
• Supported over 750 businesses across the UK with the debt finance to pursue their growth ambitions
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit wordpress-test-website.oaknorth-it.com for more information.
Contact
Valentina Kristensen, Director – Growth & Communications: [email protected] / [email protected] / 0757 234 9009