By Daniel Lanyon on 13th May 2019
The new £30 million facility was received from a UK bank, whose name is undisclosed.
Specialist property lending platform CapitalRise has secured a £30m institutional funding line from a major financial institutional investor, as it looks to expand its loan book.
The alternative property lending space continues to grow with competition for loans increasing. CapitalRise says it has now lent £300m since launching in 2016. It had a bumper equity crowdfunding round back in April 2019 that raised £2.27m and a seed round one year ago that raised £2m.
The latter round was led by Raakhe K Tandon, the daughter of renowned banking entrepreneur and founder of India’s fourth largest private sector bank, Rana Kapoor.
CapitalRise’s new institutional partner, who remains undisclosed, will fund loans alongside the company’s existing funding sources and, help itunderwrite larger loans, the firm said.
It currently offers flexible loans to developers up to £5m concentrating mostly on prime central London projects and those in the South East of England.
“It provides us with more bandwidth to capitalise on the high volume of quality loan enquiries being generated by our origination team. To have attracted the attention of such a highly regarded institutional partner acts as a major validation of the quality of our lending.”
“Having already invested in adding resource to meet our growing deal flow and expand marketing activities, this funding line and those we have in the pipeline are a strong endorsement of our strategy. They enable us to build on the foundations in place to scale the business across every metric, including our product range.”