RMDL makes maiden investment in asset finance sector

In its first investment in the asset finance sector, the debt solutions specialist has provided PAF with an initial commitment of £5.5m.

PAF was founded by managing director Mike Hartley (pictured above) in January 2014 and provides asset-based finance, hire purchase and refinancing facilities of between £10,000 and £3m to businesses across various sectors, including construction and transport. 

RMDL’s funding will be used to support PAF’s fast-growing loan portfolio with the investment secured over the lender’s loan book, which currently contains over 500 individual asset-finance transactions.

US Bank will act as the security trustee. 

“This transaction is a good example of our market proposition, secured debt solutions for established businesses in favourable markets,” said Pietro Nicholls, principal of RM Capital (pictured below), the investment manager to RMDL.

“This investment required bespoke structuring and documentation, and represents the high degree of confidence we have in Praetura Asset Finance, and the management team.”

Pietro Nicholls, principal of RM Capital

Mike added: “RMDL has provided a flexible facility to support PAF and we look forward to working with the team in the coming years as we deliver on our ambitious growth plans.

“The long-term nature of this funding and ongoing commitment by RMDL alongside our senior funders means we can continue to provide quick, efficient and flexible funding to UK SMEs.”

Pietro said RMDL was actively sourcing debt investment opportunities in the asset-finance market, which saw around £30bn of new business lending last year.

“We are in dialogue with a number of specialist providers to structure and transact similar tailored solutions to enable them to build their businesses, and for RMDL to support corporates and UK SMEs.”

Last month, RMDL made £10m worth of secured loans to two bridging finance providers, Interlend – a financing vehicle of Market Financial Solutions – and Quivira Capital.