By Daniel Lanyon on 24th January 2019
The new £15m five year secured loan note will finance “growth aspirations” for the firm and represents further expansion into specialty finance by RM Funds.
RM Secured Direct Lending has lent £15m to Praetura Asset Finance, a leading asset finance business, to support its acquisition of Kingsway Finance and form one of the largest independent asset finance companies in the UK.
This is the second loan RM has provided to Praetura and its sixth investment into UK speciality finance.
RM Secured Direct Lending has now fully deployed its cash available for lending and begun to draw on its revolving credit facility with OakNorth bank
Praetura Asset Finance and Kingsway Finance will have a combined loan book of £100m. The enlarged group will offer SMEs a wider range of services, RM says.
Pietro Nicholls, Portfolio Manager, RM Funds, said: “We are delighted to support Praetura in their acquisition of Kingsway Finance. With a well-established mid-market enterprise, demonstrable cash flows and highly expertise management team Praetura fits our selective investment criteria.
“RM Funds is focused on growing and diversifying our portfolio of secured, high quality debt investments.”
Insurance AI & Analytics USA (June 27-28, Chicago) is the only forum bridging the gap between the analytical and data minds and the business transformation leaders. As carriers rush to meet customer demands and deliver continuous business growth without dramatically increasing costs, deploying innovative technologies such as AI, machine learning and advanced analytics can be the only way to remain competitive. But in order to deliver real value to the organization, these innovations must have a real application in the core business areas and directly improve operational efficiency and deliver a seamless customer experience