Oaknorth receives £90m investment from GIC

By Bridging Loan Directory 3rd November 2017

GIC, the Singaporean sovereign wealth fund, will invest £90m for just under 10 percent of OakNorth*;
This follows a recent investment round of £154m from Coltrane, Toscafund and The Clermont Group;
This means that the total primary and secondary raise was £244m / $318m, making this the largest UK fintech round to date;
GIC will provide assistance in the global expansion of the business.

Last month, OakNorth secured a £154m investment from The Clermont Group, Toscafund and Coltrane, enabling it to significantly boost its contribution to the UK economy, and launch ACORN machine, the fintech platform, to lenders around the world. The bank, which lends up to £25m to UK businesses has grown its loan book to over £900m since its launch in September 2015 with clients including: LEON, Galliard Homes, Frogmore, Brasserie Blanc, Strawberry Star, and The Collective. Its loans have directly helped with the creation of over 3,500 new homes and 2,300 new jobs in the UK, as well as adding more than £3.6bn to the UK economy. While other banks have retrenched from the SME lending market due to ongoing economic uncertainty, OakNorth has seen it as an opportunity to help entrepreneurs scale at a time when the country needs it.

GIC is particularly attracted by the growth potential of ACORN and will assist in its expansion in the US, European and Asian markets. GIC is one of the world’s leading sovereign wealth funds, with well over $100bn of assets under management in more than 40 countries worldwide. The business has a global presence with offices in 10 cities around the world, a portfolio spanning six core asset classes and an experienced team of over 1,300 people.

Rishi Khosla, pictured, CEO and co-founder of OakNorth, commented:

“We are extremely excited to have another strong investor, especially one with such a global perspective and sizeable portfolio as GIC. Given the recent £154m raise, there wasn’t an immediate need to take in additional capital. However, when we became aware that GIC was interested in investing, there was a collective view that it would be hugely beneficial to the company if they did, so Indiabulls agreed to sell just under 10 percent of their stake. The transaction is due to close in mid-November and GIC will assist in ACORN’s global expansion, ensuring that banks and lending institutions around the world are able to originate, underwrite, monitor, and book bespoke SME loans faster, more efficiently and with more rigour.”