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Foresight provides £15 million debt facility to specialist lender Reto Finance

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  • Funding will be used to expand Reto Finance’s product offering, supporting the launch of its real estate development finance product in the Channel Islands
  • Investment aimed at tackling the region’s housing crisis by providing local developers with the finance required to build new homes
  • New facility takes Foresight’s committed capital to the alternative lending sector to over £165 million

Click here to read the announcement as a PDF

London 6 October 2021: Foresight Group, an award-winning listed alternative investment manager, has provided a senior secured debt facility of up to £15 million to Channel Islands multi-product specialist lender Reto Finance (the “Company”).

Reto Finance was launched in 2019 following a buy-out from Shawbrook International by Quilam Capital and has since served hundreds of consumer and SME borrowers across the Channel Islands. Reto Finance is led by its CEO Adam Dawson who spent seven years building and managing a specialist lending business for an established bank, after working for ten years as a management consultant. Under Quilam Capital and Adam’s leadership, Reto Finance is increasingly becoming the “go to” specialist lender on the Channel Islands offering a wider breadth of products to SMEs and consumers than many of its rivals. The new investment will support the launch of a real estate development finance product and will allow the Company to offer increased flexibility on its existing real estate bridging product.

Foresight Group, fast becoming known as an alternative finance provider to lending businesses, structured a senior debt facility tailored to suit the flexibility required by the Company’s new product.  Investment into lenders such as Reto Finance aligns with Foresight’s regional approach to investing, offering support to local economies and businesses that are unable to access traditional forms of financing. With this investment, Foresight has now committed over £165 million of capital to the alternative lending sector.

The property market in the Channel Islands has been well documented in recent months. In June of this year, Jersey's parliament voted against declaring a housing crisis on the island despite clear evidence of demand for real estate far-outweighing supply. Reports indicate there are six or seven parties on average seeking any one rental property, highlighting the need for a substantial increase in the supply of new housing.

Reto, Spanish for “challenge”, was keen to develop a new product to support local property developers and consequently help to address the housing shortage. Traditionally more focused upon bridging, Reto is pleased to add a flexible development product to their offering.

Commenting on the new facility, Adam Dawson, CEO of Reto Finance said: “This additional line of liquidity allows us to broaden our real estate offering meaning that we can continue to support local property developers across the Channel Islands with tailored funding solutions. Foresight’s flexibility was key in allowing us to develop a market leading development finance product and we look forward to playing a part in supporting the growth of the property markets in both Jersey and Guernsey.”

Oliver Bates, Private Debt Manager at Foresight, added: “We are excited to support the growth of Reto Finance and, in turn, make an impact on the real estate market across the Channel Islands. With this partnership, we build on a previous investment from Quilam Capital who are celebrated investors in the alternative lending space.”

Advisers to the Company:

Legal Advice:                    Travers Smith LLP, Bedell Cristin and Ogier

Advisers to Foresight:

Commerical DD:              Luminii Consulting Limited

Financial DD:                    Beavis Morgan LLP

Legal DD:                          Shakespeare Martineau LLP and Carey Olsen

Cyber DD:                         KryptoKloud Limited

ENDS

For more information contact:

Chris Barry: barry@thisisinfluential.com / +44(0)7733 103 693

Tom Carlin: carlin@thisisinfluential.com / +44(0)7827 957 740

 

Notes to Editors

About Foresight Group LLP (“Foresight”):

Foresight is an award-winning listed infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 35 years.

Foresight has £7.8 billion of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs), Venture Capital Trusts (VCTs), Inheritance Tax Solutions using Business Relief (BR) and Open-Ended Investment Companies (OEICs).

Foresight’s Private Equity Team, comprising over 30 investment professionals, manages c.£700 million in a portfolio of more than 100 companies and pursues four discrete but complementary investment styles: Venture, Impact, Growth and Replacement Capital through its growing regional office network.

Foresight was a commended finalist in the Best Venture Capital Trust Provider category at the 2020 Investment Life & Pensions Moneyfacts Awards. Foresight was named ‘Fund Manager of the Year’ at the PLC Awards last year, Private Equity/Venture Capital Deal of the Year at the Insider South East Dealmakers Awards and International Deal of the Year at the North West Rainmakers awards in 2021.

Foresight’s largest office is in London with regional UK offices in Edinburgh, Manchester, Nottingham, Milton Keynes, Leicester, Cambridge and Guernsey and international offices in Sydney, Rome, Madrid, and Luxembourg.

www.foresightgroup.eu

About Reto Finance

Reto Finance is a multi-product specialist lender offering a range of consumer, SME and property-based loans in the Channel Islands.

Reto Finance formed in 2019 following a local management buy-out of established and respected finance company Shawbrook International. The management team and new owners Quilam Capital recognized individuals and business owners want a funding partner which understands local market conditions and is flexible to their specific needs. Reto Finance’s decision-making process is extremely quick, and execution follows smoothly thereafter. It can typically transact within days from first seeing the business or receiving a loan application.

www.retofinance.com

For more information contact:

Adam Dawson: adam.dawson@retofinance.com / +44 (0) 1543 886 900