Kuflink secures £35 million institutional debt funding

By Bridging Loan Directory 20th July 2023

Kuflink Group PLC (and associated entities, collectively “Kuflink”), one of the UK’s most respected bridging & development non-bank lenders, and European Risk Capital LLP (“ERC”) jointly announced today that Kuflink has entered into a £35 million institutional debt facility placed by European Risk Capital with Paragon Bank PLC.

Secured on a diverse portfolio of bridging & development loans, the Revolving Credit Facility provides Kuflink with strategic access to institutional capital, scalable growth, funding optionality, and a significant alternative source of debt finance.

With an initial £35 million aggregate size subject to increase, and a flexible three-year commitment renewable annually, the Facility complements Kuflink’s award-winning Market Place lending platform having originated in excess of £300 million gross loans since its inception with zero investor losses to date.

Narinder Khattoare, CEO, Kuflink commented:

“The new facility will take Kuflink to the next stage in the development of our growth plans and is particularly welcome as it ensures certainty of funding for our introducers and complements our existing, successful Market Place lending platform.

This agreement is the culmination of a lot of hard work, not only from our team at Kuflink but especially at European Risk Capital and Paragon Bank and I would like to thank everyone involved for making it happen.”

Tony Gioulis, Managing Partner, European Risk Capital commented:

“Against the current macroeconomic backdrop and challenging market conditions, the Facility is a testament to Kuflink’s loan portfolio credit quality, robust underwriting criteria and, in particular, Team Kuflink’s resilience and track record, in conjunction with Team Paragon’s product skill and asset class expertise.

The transaction is consistent with European Risk Capital’s strategy of delivering transformative value to UK non-bank originator lenders in terms of committed growth capital and enabling them to access enhanced leverage at a competitive cost of funds, underpinned by our institutional investor base and its broad risk/return credit profile.”

Jamie Pickering, Director, Structured Lending, Paragon Bank commented:

“Paragon is delighted to further our support for innovative specialist lenders by providing Kuflink with a bespoke, structured solution.

With a strong management team and a positive focus on the UK housing market, Kuflink is ideally placed to achieve their growth plans.