P2P Global Investments sells largest position for €250m

By Daniel Lanyon on Tuesday 27 August 2019

Alternative Lending

The investment trust has provided financing in excess of €385m to Castlehaven since 2016.

P2P Global Investments sells largest position for €250m
Image source: Pexels

The £1bn P2P Global Investments has sold one of its largest positions, in Castlehaven Finance, an Irish alternative development and bridging finance lender. 

Castlehaven typically provides loans of between €1m - €20m in the property space, an increasingly big proportion of P2P GI’s portfolio. 

Both its loan and equity interests in Castlehaven represented a significant proportion of P2P Global's portfolio. 

P2P Global has provided financing in excess of €385m to Castlehaven since 2016 and had a 25 per cent equity stake in Castlehaven Finance, together with other loan and debt interests. 

The gross proceeds from the sale of P2P Global's interests are c.€250m which includes a 25 per cent equity stake along with other loan and debt interests. This represents approximately 20 per cent of the portfolio value and 31 per cent of Net Asset Value (NAV). Three of the top 10 loans in P2P Global's portfolio at December 2018 were loans originated through Castlehaven.

Lindsey McMurray, Managing Partner of Pollen Street Capital, the fund’s investment manager, said: "We have had a successful relationship with Castlehaven Finance, provided them with a significant amount of financing and have been delighted with the development of the business since the beginning of the Company's partnership in 2016.  We are happy to have contributed to Castlehaven Finance's growth and wish the team every continued success."

Pollen Street Capital says it has a strong pipeline of new opportunities to reinvest the sale proceeds. P2P GI has increasingly shifted to real estate exposure, mainly through Zorin Finance - a UK lender and Castlehaven Finance in Ireland. 

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