Lender capital raise

Recognise announces £8.7m capital raise

Recognise Bank has secured fresh investment from its existing shareholders to support its business lending and create a new team to develop the bank’s digital innovation.

The commercial lender will benefit from £8.7m of new capital following the latest round of fundraising by the City of London Group (CoLG), the bank’s parent company. 

The latest investment comes from two of CoLG’s existing shareholders, family office PV27, and London-based property firm, Max Barney Investment Limited. 

The funding will be used to support the company’s business lending, as well as create a new team to develop new products and revenue streams. 

Several “high calibre appointments” are said to have been made, and the first development projects are due to be announced soon.

“To receive this fresh investment from two of our keystone shareholders shows their continued support for Recognise and commitment to our strategy and vision,” said Bryce Glover, CEO at Recognise.

“Investing in our digital capabilities will help us build a world-class business bank, for today and the future.”

So far, the CoLG has raised almost £65m in investment to create the new business bank.

Recognise recently achieved £100m in lending, circa six months after receiving its full authorisation. 

Its personal savings accounts have attracted £95m in deposits so far.

Phil Jenks, chairman ay the CoLG, added: “We have consistently delivered on time and in line with our strategy to create a new bank for Britain’s growing businesses, firms that are the lifeblood of our economy, but are consistently ignored and let down by the mainstream banks.

“The latest investment from Ruth Parasol and Max Barney is an important moment for Recognise, because it means the bank can build on a foundation of £100m in lending and £95m in savings deposits to push its digital capability even further and create a bank that perfectly blends speed, service and innovation.”

Earlier this month, the business recruited James Meigh as director of business development.

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