RM Capital backs UK asset-based lender

The firm has backed Praetura Asset Finance with a £10m debt package to support its portfolio expansion.

UK-headquartered RM Capital has provided a £10 million ($12.9 million; €10.9 million) debt facility to asset-based lender Praetura Asset Finance.

The firm, which focuses on financing secured loans ranging between £2.5 million and £10 million, provided the capital via its London-listed vehicle RM Secured Direct Lending.

An initial commitment of £5.5 million has been underwritten to Praetura, a firm that was established in 2014. It manages a strategy targeting opportunities in leasing and hire purchases in the UK market.

Facilities range from £10,000 to £3 million and the firm has a track record of managing investments in the construction, printing and transport industries.
The loan will support Praetura’s expansion of its portfolio.

Pietro Nicholls, principal at RM Capital, said: “This investment required bespoke structuring and documentation, and represents the high degree of confidence we have in Praetura.”

He added that the firm is closely watching asset-based lenders for future investments as the UK market is estimated to be around £30 billion.

Mike Hartley, managing director at Praetura, said: “The long-term nature of this funding alongside our senior funders means we can continue to provide quick, efficient and flexible funding to UK small and medium-sized enterprises.”

In July, RM Capital expanded its operations into Europe. The firm is targeting an overall yield of 4 percent by the end of 2017, rising to 6.5 percent next year. It has underwritten 18 loans totalling £58 million since listing its private debt investment vehicle in December.