Paragon Banking Group’s newly-created structured lending team has developed a pipeline of future opportunities following its first high profile deal with SME funding provider Liberis.
Paragon expanded its product set in October last year to gain additional exposure to lending areas it knows well as a principal and to adjacent markets.
Pipeline opportunities originate from a variety of sectors including property, retail point-of-sale, auto, asset finance and broader SME lending. The team is also working on opportunities in the auto and asset finance sectors as part of its plans to become a leading player in the mid-term.
Paragon provides senior secured funding to help other UK-based, non-bank lenders grow their activities. Its inaugural facility saw Paragon work with UK government-sponsored British Business Investments to provide up to £17.5m of senior debt each to small business finance provider Liberis. This was part of an overall £57.5m funding package, which will help to support UK small businesses and protect an estimated 100,000 jobs by 2020.
Paragon’s structured lending is led by Adam Daniels, who has 30 years’ experience of the UK specialised lender market. His career includes experience as a M&A adviser, acquiring businesses as a principal whilst at GE Capital and establishing and running a global specialist finance coverage team at Lloyds Bank.
He has been joined at Paragon by Lewis Fitzsimons and Jamie Pickering, two of his former Lloyds colleagues, both with extensive experience in the structured lending arena.
Daniels said: “There has never been more to play for as a direct lender or a supplier of wholesale funds to other UK lenders. Demand from UK consumers and SMEs remains strong, allowing traditional client-focussed and technology based lenders to prosper.
“The opportunity to establish a new ‘wholesale’ senior debt provider in the UK, to assist best in class lenders build their balance sheet was compelling. This is a specialist activity so Paragon has built a team with deep knowledge and experience of the various sectors, structuring, credit risk and documentation.”
Pictured (L-R): Jamie Pickering, Adam Daniels, Lewis Fitzsimons