Cain invests £100m to fuel Fortwell growth
Cain International has extended lender Fortwell Capital’s credit line by another £100m to £500m, boosting its plans to progress new debt financing strategies and expand overseas.
The short- and medium-term lender will use the increased funds to grow its lending activity, which includes undertaking its first loan outside of the UK.
Fortwell is focusing in particular on later living. It is considering a dedicated strategy focusing on funding care homes, retirement living and similar asset types. Since 2014, the firm has enabled the construction of 50 purpose-built care homes comprising more than 3,500 beds.
Cain International has extended lender Fortwell Capital’s credit line by another £100m to £500m, boosting its plans to progress new debt financing strategies and expand overseas.
The short- and medium-term lender will use the increased funds to grow its lending activity, which includes undertaking its first loan outside of the UK.
Fortwell is focusing in particular on later living. It is considering a dedicated strategy focusing on funding care homes, retirement living and similar asset types. Since 2014, the firm has enabled the construction of 50 purpose-built care homes comprising more than 3,500 beds.
John Cole, senior managing director at Cain International and head of the firm’s global debt business, told EG that the growth potential in the later living sectors is “significant”.
The lender is also considering the scope to bring third-party capital partners on board, which Cole said forms part of the strategy to “build for the longer term”.
Dan Smith, chief executive of Fortwell (pictured, right, with managing director Arthur Jennings), said the team is in the “early stages” of finding a partner to support its growth plan, citing a growing number of inbound enquiries from investors.
“There are a lot of international pools of money who are looking to access debt strategies in the UK and Europe,” Smith added.
Cain initially invested £400m in the firm, formerly backed by Christian Candy’s CPC Group, in 2018. Fortwell typically issues loans ranging from £10m to £50m, with an average loan size of £30m.
During the past three years the lender has provided £600m of funding across 19 loans, including four revolving credit facilities. Its loan repayments over the past 32 months stand at £180m, representing 30% of its loan book.
The news comes after Fortwell provided a £18.7m value-add loan to InfraRed Capital Partners in April for the refinancing and refurbishment of Verve on Villiers Street, WC2.
Smith said: “Cain’s continued backing and confidence in our lending strategy since 2018 has propelled Fortwell to new heights.
“In this next phase, we see a major opportunity to bring new non-construction loans on board, as well as looking at opportunities in new markets outside of the UK, and possibly new capital partners to fuel the growth of the business.
“The extended facility with Cain will enable Fortwell to capitalise on some of those new lending opportunities, while continuing to support developers that require finance to progress complex projects across all sectors and UK regions.”
Cole said: “Since partnering with Fortwell in 2018, we have been impressed with the team’s ability to identify and execute on compelling investment opportunities in the specialist real estate debt market.
“We have worked well together over the last 32 months and the team’s resilience despite a challenging backdrop has reaffirmed our belief in the long-term strength of the business as it seeks to expand its reach into new sectors, loan types, and markets.”
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Photo by Tom Campbell
