Cabot Square Capital acquires majority stake in bridging lender

MSP Capital has announced that Cabot Square Capital has acquired a majority stake in the business.

The South of England-based bridging and development finance provider was formed in 1990 and holds a loan book of over £150m.

Alongside the equity transaction from Cabot Square Capital, MSP has also increased its committed senior funding line to £90m, with NatWest joining Shawbrook Bank and funds managed by Insight Investment as senior lenders to the group.

Martin Higgins, managing director at MSP Capital, said the team was delighted to welcome Cabot Square Capital as its new equity partner.

“It is important for our business to have partners with the same confidence as us in the specialist finance products we provide to property investors and developers across the UK. 

“Our new capital structure will help us deliver our differentiated relationship-led service to even more borrowers.”

Richard McDougall, partner at Cabot Square Capital, added: “Martin and the team at MSP have built a very successful business serving SME property investors in the South of England. 

“We are delighted to be partnering with MSP to support them on the next phase of their growth plans.”

The bridging lender was advised by the financial services corporate finance team at EY.

Ian Cosgrove, partner at EY, said it was delighted to have supported MSP Capital in securing a major investment.

“The combined sell-side and debt-raising process enabled MSP Capital to have both equity and debt funding committed at closing, leaving the business well-placed moving into 2019 and beyond.”

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