RM Secured Direct Lending (RMDL) is to lend up to £10 million in loans to Praetura Asset Finance (PAF), with an initial commitment of £5.5 million.
PAF provides asset-based finance, hire purchase, finance leasing and refinancing facilities of between £10,000 and £3m to businesses across a variety of sectors, including construction and plant, engineering, printing, transport, waste and recycling, and agriculture.
The strategic financing will be used to support PAF’s growing loan portfolio. The investment is secured over PAF’s lending book which currently contains over 500 individual asset finance transactions. US Bank will act as security trustee.
Pietro Nicholls, principal of RM Capital, said: “This transaction is a good example of our market proposition, secured debt solutions for established businesses in favourable markets. This investment required bespoke structuring and documentation, and represents the high degree of confidence we have in Praetura Asset Finance and the management team.
“We are actively sourcing debt investment opportunities in the asset finance market, which last year saw c.£30bn of new business lending. We are in dialogue with a number of specialist providers to structure and transact similar tailored solutions to enable them to build their businesses, and for RMDL to support corporates and UK SMEs.”
Mike Hartley, managing director of Praetura Asset Finance, added: “RMDL have provided a flexible facility to support PAF and we look forward to working with the team in the coming years as we deliver on our ambitious growth plans.
“The long-term nature of this funding and ongoing commitment by RMDL alongside our senior funders means we can continue to provide quick, efficient and flexible funding to UK SMEs.”