OakNorth Bank completes £45m capital call facility for private equity real estate investor, Paloma Capital

  • Founded in 2015 by Joe Froud and Jack Pitman, Paloma Capital is a leading entrepreneurial private equity real estate investor;
  • The firm has raised a total of c.£440m of wholly discretionary capital in three value-add funds since 2015, mainly from institutional investors in the UK, Europe and the Middle East;
  • It has raised £120m out of a target of £200m for its latest fund, Paloma Real Estate III, mainly from existing investors in Paloma Real Estate I and II;
  • Target assets will typically have the potential to add value from capital investment and active management, concentrating on relatively small lot sizes of £5m to £15m;
  • The focus will be on multi-let urban industrial and logistics schemes, as well as trade counter, open storage, self-storage and EV charging assets.

OakNorth, the neobank for entrepreneurs, by entrepreneurs, has provided a £45m Revolving Credit Facility (RCF) to Paloma Capital, a leading entrepreneurial private equity real estate investor.

Founded by Joe Froud and Jack Pitman, Paloma Capital has raised a total of c.£440m of wholly discretionary capital in three value-add Funds since 2015, mainly from institutional investors in the UK, Europe, and the Middle East. It has raised £120m out of a target of £200m for its latest fund, Paloma Real Estate III, mainly from existing investors in Paloma Real Estate I and II.

Paloma Real Estate III will have an opportunistic strategy and can invest across all sectors and regions. Although, as with its two previous funds, it will focus primarily on income-producing, multi-let urban industrial and logistics schemes, as well as trade counter, open storage, self-storage and EV charging assets, in addition to a small allocation to value-led retail warehouse investments. Target assets will typically have the potential to add value from capital investment and active management, concentrating on relatively small lot sizes of £5m to £15m.

Jack Pitman, Founding Partner of Paloma Capital, commented: “The OakNorth facility means we can draw down up to £45m on only 48 hours notice, which is great if opportunities come up to buy assets quickly. It also allows us to bridge the gap between completion and the drawdown of senior debt at a later stage. Having worked closely with Mohith and the OakNorth team, we are delighted with the effort they have made to understand our requirements and their willingness to design a package that was tailored to our specific needs. They have been very responsive throughout and managed to document the transaction within a week of receiving credit approval, which was exceptionally quick and exactly what we needed.”

Mohith Sondhi, Senior Director of Debt Finance at OakNorth, added: “Both Jack and Joe are industry stalwarts with 30+ years of experience investing in UK real estate. Paloma Capital has built-up a hugely impressive track record of significant outperformance of the UK market, through astute market segment rotation and a unique focus on repositioning smaller overlooked assets. This transaction represented an exciting opportunity for us to provide a Capital Call facility to a well-sized fund with a list of strong limited partnerships behind them, including large funds and trusts, as well as an array of reputable high-net-worth individuals. We look forward to supporting Paloma Capital on future transactions, as we look to further highlight our expertise operating within the UK’s fund finance market.”

ENDS

 

Notes to editors

About OakNorth Bank plc

Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.

Since its launch, the bank has:

  • Lent over £9.7bn, directly helping with the creation of 40,000 new jobs and 29,000 new homes across the UK. 
  • Raised deposits from c.175,000 savers.  
  • Supported several hundred 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 www.oaknorth.co.uk for more information.

Media contact

Tom Pavey-Smith, Associate Director, Growth & Communications – [email protected] / [email protected] / 0791 716 5588

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