Glenhawk secures £25m mezzanine funding line
Glenhawk has agreed to a £25m mezzanine funding line with global private investment firm Balbec Capital.
The funding line will support the senior funding line Glenhawk secured with J.P. Morgan in March as it targets growing the UK loan book to £200m by the end of 2021.
This is the first time that Balbec Capital, which has invested over $6.5bn in 20 countries and specialises in investments and joint-ventures in alternative credit opportunities, has partnered with a UK bridging lender.
The funding line, which was arranged and closed since the start of the COVID-19 pandemic, will be used to underwrite both regulated and unregulated bridging loans.
Glenhawk launched its first regulated bridging product last month.
This funding news comes following Glenhawk recently extending its geographical footprint making its products available to borrowers active in the Scottish real estate market.
Guy Harrington, chief executive of Glenhawk, said: “This is an important milestone for Glenhawk, which will allow us to accelerate our lending activity in response to unprecedented borrower demand.
“It also underlines the attractive returns available in the real estate alternative lending sector, underpinned by the retrenchment of the high street banks and lower for longer interest rate environment.
“The whole process was undertaken remotely, a major achievement but one that is testament to both parties eagerness to work together.
“With the recent vaccine announcement offering real encouragement for the UK’s recovery from the impact of the virus, we look forward to 2021 and hitting our ambitious lending targets with confidence.”
Rob Ryan, a partner in Balbec Capital, added: “We are excited to be able to partner with Glenhawk.
“We have been impressed by the way it has led the implementation of institutional style practices across the sector and, in particular, by its robust underwriting process, which has resulted in the strong performance of its existing loan book.
“Alongside J.P. Morgan, we look forward to supporting Glenhawk as it looks to build on the momentum of recent months.”