OakNorth rolls out £45m debt facility to private equity investor

React News
Chris Borland

Revolving credit facility issued to group raising third fund

  • What Paloma Capital has bagged a £45m revolving credit facility from OakNorth
  • Why Quick draw-down option provides ability to target quick deals
  • What next Paloma Real Estate III fund targeting £200m raise

Paloma Capital has secured a £45m revolving credit facility (RCF) from OakNorth, React News can reveal.

The investor has so far raised £120m towards a £200m target for its latest fund, Paloma Real Estate III.

Founded by Joe Froud and Jack Pitman, the private equity investor has raised £440m of discretionary capital in three value-add funds since 2015, with the majority of investors in the third fund being existing investors in previous iterations.

“The OakNorth facility means we can draw down up to £45m on only 48 hours’ notice” JACK PITMAN, PALOMA CAPITAL

Paloma Real Estate III will have an opportunistic strategy and will be able to invest across all sectors and regions, although it will focus on income-producing, multi-let urban industrial and logistics schemes.

The fund will also explore opportunities in trade counters, open storage, self-storage and EV charging assets, as well as value-led retail warehouse investments.

Jack Pitman, founding partner of Paloma Capital, said: “The OakNorth facility means we can draw down up to £45m on only 48 hours’ notice, which is great if opportunities come up to buy assets quickly. It also allows us to bridge the gap between completion and the draw down of senior debt at a later stage.”

Mohith Sondhi, senior director of debt finance at OakNorth, added: “This transaction represented an exciting opportunity for us to provide a capital call facility to a well-sized fund with a list of strong limited partnerships behind them, including large funds and trusts, as well as an array of reputable high-net-worth individuals. We look forward to supporting Paloma Capital on future transactions, as we look to further highlight our expertise operating within the UK’s fund finance market.”