Guy Harrington

Glenhawk secures £25m mezzanine funding line with Balbec Capital

Glenhawk has received a £25m mezzanine funding line with global private investment firm Balbec Capital.

It will be used to underwrite both regulated and unregulated bridging loans, and represents the first time that Balbec Capital has partnered with a UK bridging lender. 

The backing, which was arranged and closed since the start of the Covid-19 pandemic, will support the £200m senior funding line Glenhawk secured with JP Morgan in March.

“This is an important milestone for Glenhawk, which will allow us to accelerate our lending activity in response to unprecedented borrower demand,” said Guy Harrington, CEO at Glenhawk (pictured above). 

“It also underlines the attractive returns available in the real estate alternative lending sector, underpinned by the retrenchment of the high street banks and lower-for-longer interest rate environment.”

The whole process was said to have been undertaken remotely.

Rob Ryan, a partner at Balbec Capital, added: “We have been impressed by the way Glenhawk has led the implementation of institutional-style practices across the sector and, in particular, by its robust underwriting process, which has resulted in the strong performance of its existing loan book. 

“Alongside JP Morgan, we look forward to supporting Glenhawk as it looks to build on the momentum of recent months.” 

The specialist lender has generated a record £434m of new enquiries since August.

It aims to grow its UK loan book to £200m by the end of 2021 and provide £500m of lending by 2022. 

“With the recent vaccine announcement offering real encouragement for the UK’s recovery from the impact of the virus, we look forward to 2021 and hitting our ambitious lending targets with confidence,” Guy commented. 

Nick Hare, head of capital markets at Glenhawk, stated: “With this funding structure now in place, it allows us to build on the momentum of recent months and benefit from the favourable market conditions underpinning demand for bridging loans from both property professionals and homeowners.”

In October, Glenhawk launched its first regulated bridging product for borrowers looking to secure finance against their primary residence, which marked its entry into the UK homeowner mortgage market.

The lender received authorisation from the FCA in February this year.

The business — which has made a number of appointments in recent months — has also extended its geographical footprint, extending its reach to borrowers in the Scottish real estate market. 

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