RM Secured Direct Lending in maiden UK asset finance investment

RM Secured Direct Lending is a closed-ended investment trust that provides loans sourced by its investment manager, RM Capital Markets, which specialises in credit sales & trading, foreign exchange, capital markets and advisory and fund management.

Founded in 2010, RM Capital Markets has transacted more than £50 billion of bonds and loans since its inception.

The investment marks its first move into the UK asset finance market as part of a drive to expand in the sector, which saw £30 billion of new business lending last year.

Pietro Nicholls, principal at RM Capital (pictured above), said: “This investment required bespoke structuring and documentation, and represents the high degree of confidence we have in Praetura Asset Finance and the management team.

“We are actively sourcing debt investment opportunities in the asset finance market. 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.”

Praetura Asset Finance, the first independently owned asset finance company to enter the UK marketplace for 15 years, has grown significantly since it was founded in January 2014 by managing director Mike Hartley.

The business provides asset-based finance, hire purchase, finance leasing and refinancing facilities of between £10k and £3m to businesses across a variety of sectors, including construction and plant, engineering, printing, transport, waste and recycling, and agriculture.

The strategic financing will be used to support Praetura Asset Finance’s loan portfolio and will be secured over its lending book, which currently contains more than 500 individual asset finance transactions. US Bank will act as security trustee.

Mike Hartley, managing director of Praetura Asset Finance, said: “The long-term nature of this funding and ongoing commitment by RM Secured Direct Lending alongside our senior funders means we can continue to provide quick, efficient and flexible funding to UK SMEs”.