Assetz Capital secures £200m funding from Aeon
Assetz Capital, the specialist SME finance platform, has announced a new £200m funding relationship with Aeon Investments.
Aeon will inject an initial £200m of investment into SME loans arranged by Assetz Capital over the next three years, enabling the business to provide commercial mortgages of up to £10m on commercial investment properties.
The funding relationship will enable Assetz Capital to further diversify its commercial mortgage lending, and expand its capacity to lend across the broadest range of commercial properties used by UK SMEs at a time when the “need for SME funding has never been more apparent”.
Assetz Capital, the specialist SME finance platform, has announced a new £200m funding relationship with Aeon Investments.
Aeon will inject an initial £200m of investment into SME loans arranged by Assetz Capital over the next three years, enabling the business to provide commercial mortgages of up to £10m on commercial investment properties.
The funding relationship will enable Assetz Capital to further diversify its commercial mortgage lending, and expand its capacity to lend across the broadest range of commercial properties used by UK SMEs at a time when the “need for SME funding has never been more apparent”.
As SMEs are disproportionately impacted by the rising costs of materials, inflation, increasing wages and a shortage of skilled staff, there is an increasing requirement for new funding as banks are visibly pulling back funding for SMEs.
Stuart Law (pictured), chief executive of Assetz Capital, said: “The need for SME funding has never been more apparent as an increasing number of traditional lenders are not offering financing solutions to SMEs. Together, through innovative and alternative financing we can enable UK businesses to grow and scale up.”
Aeon’s partnership with Assetz Capital will enable it to expand its commercial real estate loan portfolio in the UK. This is the third funding relationship Aeon has signed with SME lenders.
Earlier this year, Aeon signed a £750m deal with Aros Kapital and a £250m strategic loan origination agreement with Arbuthnot Latham.
Oumar Diallo, chief executive of Aeon Investments, said: “Our agreement with Assetz Capital is the latest example of our commitment to the commercial real estate sector. If you adopt a strong focus on risk management and have prudent LTVs and conservative debt coverage, we believe commercial real estate lending is a very attractive asset class, particularly in the current environment with depressed fixed income market and falling equity prices.”
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