OakNorth Bank

OakNorth ups facility to RAW Mortgage Fund by £20m

OakNorth Bank has increased an existing facility to RAW Mortgage Fund to £40m.

The bank previously completed a £20m revolving credit facility with the specialist fund, which provides BTL property loans against residential real estate in the UK, in 2019.

Founded in May 2015, the fund is run by RAW Capital Partners, a Guernsey-based innovative asset management company, and led by managing director Tim Parkes and director Richard Avery-Wright.

It has completed numerous loans since launch at an average LTV of 46%  and a maximum of 55% LTV,  and achieved a net return for institutional investors of 4.43% in 2020.  

Mohith Sondhi, senior director of debt finance at OakNorth Bank (pictured above), said: “Both Tim and Richard have over 30 years of experience in financial services and, over the last few years, have made strategic investments in both their people and processes. 

“The experience and investment have clearly paid off as the fund had strong loan book performance throughout 2020 and has a strong pipeline for 2021, despite the ongoing challenges being presented by Covid-19. 

“Having provided the fund with the initial £20m facility two years ago, we saw this as an opportunity to increase our support as the fund pursues ambitious growth plans with regard to its assets under management.”

Tim added: “Throughout 2019 and 2020, we made several key hires, including a head of distribution, head of operations and a CFO — considerably increasing the size and experience of our senior team. 

“In addition to this, we’ve continued to invest in process automation, adding new functionality that’s helped us maintain our speed and efficiency as we’ve scaled. 

“We will continue to scale our team and processes in line with the envisaged growth of the fund and are grateful for OakNorth Bank’s continued support. 

“Since we completed the initial part of this transaction together, Mo and the team have done several funds finance deals, so their depth and breadth of expertise in this space continues to grow.”

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