Direct lending fund completes £15m loan to asset finance platform

By Daniel Lanyon on Thursday 24 January 2019

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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.”

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