Foresight provides 40 million debt funding line into asset-backed SME lender Reward Finance Group Limited Magazine

Funds managed by Foresight Group LLP (“Foresight”) have provided a 40 million secured loan note facility for Reward Finance Group Limited (“Reward” or the “Company”).

Leeds headquartered Reward is undoubtedly an independent lender gives secured car finance to UK-based SMEs seeking more flexible finance, more promptly than mainstream lenders can deliver.? Reward’s bespoke funding solutions take multiple assets as security, enabling the corporation to produce short to medium term loans or invoice discounting facilities to support companies in numerous different situations.

Founded next year because of the joint managing directors Tom Flannery and David Jones, Reward has delivered year on year boost its loan book and pre-tax profit.? During ending February 2017, the provider advanced funds totaling 84 million as well as the year-end loan book stood at 40 million, up 25% on the previous year.? Corresponding income grew to 7.56m and pre-tax profit was 3.5m.? The corporation continued to keep its low bad debt rates, with write-offs representing only 0.03% of total funds advanced, evidence of you can actually robust underwriting procedures as well as its highly experienced risk management team.

Reward is 70% owned by Dr Christo Wiese’s Johannesburg Wall street game listed Tradehold Limited (“Tradehold”) with Reward’s management team owning the remainder.? Currently, the business has become solely funded by Tradehold and its particular associates and affiliates.? Upon establishment of the Foresight loan note facility in August 2017, Reward drew down 20 million make it possible for a partial refinance of your Tradehold funding, as well as to provide capital to fuel the growth with the Company’s loan book.? The residual 20 million remains available for this company to draw in at a flexible basis to aid its ongoing growth.

As due to a restructuring that took place addition to the financing note facility, Tradehold’s financial assets, including its shareholding in Reward, are unbundled into a separate entity called VestIN that is certainly in Bermudan Market and South Africa’s JSE AltX Stock trading game. Finishing of the proportion transaction is predicted November 2017.?? VestIN, alongside Foresight, continues to deliver funding to Reward.

Amy Crofton, Investment Manager at Foresight, commented: “Reward Finance Group comes with an exceptionally strong status profitable growth. We have known the company for a little bit and have absolutely been afraid of its development during couple of years. Using the services of the Reward team, we structured an accommodating debt facility that could provide substantial new capital resources in promoting the ongoing success within the Company”.

James Livingston, Partner at Foresight, added: “We’re happy to back Tom, Dave plus the broader Reward team. There’re successfully addressing a tremendous gap on the market trying to expand their offering both in relation to its national reach, with the opening of more offices, and debt offerings. This investment represents a normal diversification for our own growing portfolio which we’re seeking to continue.”

Dr. Christo Wiese, Executive Chairman Tradehold SA, commented: “I have been pumped up about possibly Reward ever since i met Tom and David last year. With Tradehold’s financial support they’ve built a cutting-edge niche business for a Foresight deal we’ve got the opportunity to grow marketing ebay all the more strongly within the next A few years, throughout our new financial services vehicle”.

Tom Flannery, Reward’s Joint Md, commented: “This can be a significant leap forward inside the short past of Reward Finance Group Ltd. Whilst we’re also growing this company with substantial loan facilities made available from our ultimate parent since our inception in 2011, we’ve been hunting for a senior debt funding facility to take the business about the next phase. Amy Crofton additionally, the Foresight team come with an in-depth perception of the british isles alternative funding market, and actually grasped that no one deal is equivalent to the subsequent when lending to SMEs. Foresight therefore tailor-made the loan note facility so it will be a completely bespoke funding solution and compatible to our small business.”

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