Praetura Asset Finance Group (PAF Group), are proud to announce that they have closed a £75m securitisation facility with NatWest Markets. The rated facility will allow PAF Group to expand its origination capacity, enabling growth in its loan book to provide up to £200m to SMEs across the UK.
Having already received £30m in funding from NatWest into PAF Group’s existing loan books, this latest financing for Praetura is a further sign of the strength of the business. The facility will enable PAF Group to increase its funding capacity.
The deal is part of PAF Group’s long-term strategy of leading organic growth and consolidation in the sector, having recently acquired Cheshire-based Kingsway Finance in a seven-figure deal. Now, as one of the UK’s largest asset finance lenders, the company is well on track to pass its target of a £250m loan book by 2021.
Peadar O’Reilly, Founding Director of Praetura Asset Finance Group, who led and structured the transaction, said: “This securitisation is an exciting development for Praetura, not least because it validates the quality of our loan book and the talent of our team. With our debt rated for public markets, it forms a platform for organic growth and gives us further capability to enhance that growth through the acquisition of complementary businesses and/or teams. We’re an ambitious company; we set Praetura Asset Finance up five years ago and we now have a loan book of over £100m. This inaugural securitisation will help us grow the company significantly and continue to achieve new ambitions.”
George Ross, Director, Financial Institutions Origination & Solutions, NatWest Markets, said: “We are pleased to have helped Praetura with a financing solution to meet its growth ambitions. This rated facility is a key step towards enabling Praetura to access capital markets for a public debt issuance in the future.”
Praetura Asset Finance Group was supported in the securitisation by EY and RM Funds, a subsidiary of RM Capital. EY served as financial advisor to Praetura, helping the company to source its financing partners, structure the rated transaction and develop a hedging strategy. RM Capital provided funding for the securitisation, while also advising on the process.
Jordan Blakesley, Senior Manager, EY FS Corporate Finance team, said: “We’re very pleased to have advised Praetura on this transaction. The securitisation demonstrates the strength of PAF Group and the new structure provides the capacity to support even more UK SMEs with their financing needs.”
Pietro Nicholls, Portfolio Manager, RM Funds, commented: “We are delighted to support Praetura with their long-term growth strategy. RM Funds continues to grow and diversify its portfolio of secured, high quality debt investments. This is our third investment with Praetura and seventh investment into the speciality finance sector to date.”