‘Funding the funders’ trend continues with £40m deal

A UK-based SME lender has received backing from private equity group Foresight as it seeks to expand its activities.

As small but fast-growing SME lenders seek to move into the lending gap provided by the retreat of the banks, their ambitions are increasingly being supported by private equity firms and other investment groups.

The latest example is a £40 million ($52 million; €44 million) secured loan note facility committed to Leeds-based Reward Finance by Foresight Group, the infrastructure and private equity manager.