OakNorth provides bespoke capital call facility to returning customer and 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;
  • Paloma has raised over £450m of wholly discretionary capital in three value-add funds since launch, mainly from institutional investors in the UK, Europe and the Middle East;
  • The bespoke facility will be deployed within the firm’s Paloma Real Estate Fund II which is fully invested with 87% of the Fund committed to the multi-let urban industrial/warehouse  market;
  • The transaction follows OakNorth’s initial capital call facility to Paloma in September 2023, to support the launch of its latest fund, Paloma Real Estate III.

OakNorth, the digital bank for entrepreneurs, by entrepreneurs, have recently provided capital call facilities to two of Paloma’s funds.

Founded by Joe Froud and Jack Pitman, Paloma Capital has raised over £450m of wholly discretionary capital in three value-add Funds since 2015, mainly from institutional investors in the UK, Europe, and the Middle East. The firm’s investment philosophy is founded on three key pillars; an acute focus upon mispricing, an entrepreneurial approach to capex-intensive asset management and a preference for the majority of its return to come from income.

The bespoke capital call facility from OakNorth will be deployed within the firm’s Paloma Real Estate Fund II , which has investments in 34 individual real estate assets located across the UK. Launched in September 2018, the fund is fully invested with 87% committed to the multi-let urban industrial/warehouse market.

Jack Pitman, Founding Partner of Paloma Capital, commented: “Having worked closely with Mo and the OakNorth team last year on securing a capital call facility for the launch of our latest fund,  Paloma Real Estate III, we were confident they would be the right funding partner for us again on Fund II. They were highly attentive and entrepreneurial throughout the transaction, and their expertise and knowledge of the UK’s fund finance market meant that we were able to close the deals within days rather than weeks or months.

Mohith Sondhi, Senior Director of Debt Finance at OakNorth, added: “This transaction represented a perfect opportunity for OakNorth to once again provide Capital Call facilities to one of the UK’s leading entrepreneurial private equity real estate investors. Paloma is exactly the kind of private equity firm that we want to work with – one with an incredibly strong management team, led by Joe and Jack, who have a proven track record spanning over 30 years. The firm continues to strengthen its reputation, particularly in the industrial sector, and having seen the track record of the three value-add Funds they have raised since they founded the firm in 2015, we can understand why their fundraising for Fund III is going so well. 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 

Launched in September 2015, OakNorth is the digital bank for entrepreneurs, by entrepreneurs, empowering the lower mid-market (businesses with £1m-£100m turnover) to support growth, prosperity, and innovation for the benefit of all. 

Since its launch, the bank has: 

  • Lent over £11bn to these businesses, directly helping with the creation of 40,000 new jobs and 29,000 new homes across the UK;
  • Provide deposit services to over c.250,000 savers.   

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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