SME funder doubles its lending capability
Reward Finance Group, an alternative funder, has doubled its lending capability with a £40m investment from Foresight Group.
Foresight Group, a private equity investment manager, has provided Reward Finance with a secured loan note facility against the investment, which will significantly increase its lending capabilities to SMEs.
In the year ending February 2017, Reward Finance advanced funds totalling £84m and the year-end loan book stood at £40m, up 25 percent on the previous year.
Its pre-tax profit hit £3.5m and the company maintained low bad debt rates, with write-offs representing only 0.3 percent of total funds advanced.
Tom Flannery, joint managing director of Reward Finance with David Jones, said: “We have been growing the business with substantial loan facilities provided by our ultimate parent since our inception in 2011, we have been looking for a senior debt funding facility to take the business on to the next level.
“The Foresight team have an in-depth understanding of the UK alternative funding market, and really grasped that no one deal is the same as the next, when lending to SMEs. Foresight therefore tailor-made the loan note facility to make it a truly bespoke funding solution and well suited to our business needs.”
Amy Crofton, investment manager at Foresight, said: “Working with the Reward team, we structured a flexible debt facility that will provide substantial new capital resources to promote the ongoing success of the company”.
James Livingston, partner at Foresight, said Reward Finance is addressing a significant gap in the market and that this investment represents a healthy diversification of Foresight’s growing portfolio.