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Alantra advises Bank North on senior financing facility to support new lending
As Bank North continue to raise investment in their latest funding round with GCV, which at the time of writing has seen more than £700,000 pledged, it comes as even greater news that the SME-focused bank has now officially secured its £50 million debt facility for 2022.
Alantra, the independent global mid-market investment bank, has advised Bank North Limited (“Bank North” or “the Company”), the UK's first truly regional business bank of the modern era, on the design and execution of a senior financing facility up to £50 million with Insight Investment.
The facility will support the expansion of Bank North’s early lending activities to UK SMEs. Following on the launch of Bank North’s first ‘regional pod’ in Manchester earlier this year, the facility will support lending in additional pods expected to be rolled out in the UK next year.
Founded in 2018 with a mission to be the UK’s first truly regional bank of the modern era, Bank North successfully received a banking licence from the UK Prudential Regulatory Authority (Authorised with Restrictions – ‘AWR’) in August 2021 alongside the close of a £20 million Series A funding round.
Alantra advised the Company on the commercial and structural aspects of the transaction, supporting the Bank North team in market sounding and selection of the preferred counterparty, as well as assisting in the negotiation of final terms.
David Broadbent, co-founder and CFO of Bank North said: “We have been delighted with the support provided by the Alantra team. This represents a significant strategic milestone for the business and is further validation of the Bank North proposition. It enables us to bring Bank North to the market and provide much needed support to UK SMEs; and it represents a fruitful relationship with Insight, a market leader and a high-calibre partner of real strength.’
Jeremy Deacon, Senior Portfolio Manager at Insight Investment, commented: “UK SMEs are a significant focus area for our secured finance strategies. Supporting and scaling growing businesses such as Bank North helps us to source the risk-adjusted returns that we seek for our actively managed portfolios.”
James Fadel, managing director at Alantra, remarked: “We are extremely pleased to have advised Bank North on the execution of this important transaction. This facility further validates Bank North’s attractive product proposition and supports the team’s ambitions to shake up the UK SME lending market”.
David Rochow and Francesco Confuorti were key members of the Alantra team dedicated to this transaction. The Bank North team was led by Matt Dobson, Treasurer, and Martin Elliott.
Alantra is a global alternative asset management, investment banking, and credit portfolio advisory firm focusing on providing high value-added services to companies, families, and investors operating in the mid-market segment. The Group has over 540 professionals across Europe, the US, Latin America, and Asia.
In Alternative Asset Management, Alantra offers its clients unique access to a wide range of investment strategies in seven highly specialized asset management classes (private equity, active funds, private debt, infrastructure, real estate, transition energy, and technology). As of June 30, 2021, assets under management from consolidated businesses stood at €2.3bn, while assets under management from Strategic Partnerships in which Alantra holds a significant stake were €11.7bn.
Its Investment Banking division provides independent advice on M&A, debt advisory, financial restructuring, and capital markets transactions, having advised on more than 450 deals for a total value of c.€70bn in the last three years. Alantra’s senior bankers and execution teams offer a global understanding of industry sectors combined with strong local relationships with the companies, investors, entrepreneurs, and financing institutions in each of its markets.
Alantra’s Credit Portfolio Advisory team is the leading portfolio advisory unit in Europe, dedicated to transaction execution, structuring, pricing, modeling and data enhancement in relation to credit portfolios and banking platforms. The team has advised on more than 140 transactions for a total volume of c. €83 billion.
A closing note
Following the past few years of tremendous growth for Bank North that we’ve been delighted to play a part in at GCV, this debt facility marks a new step in the Bank’s maturation as a company, and on behalf of the GCV team and our private investor network, it comes as brilliant news.
As we look forward to what we’re confident will be an equally exciting year in Bank North’s corporate development, there is no doubt the key role this facility will play in expanding their early lending activities and further bolstering the exciting work the team is pioneering across the UK SME space.