Voltaire Financial has established an origination partnership for asset-backed special opportunities with a prominent European investment fund.
The fund provides loans or investments over short and medium terms of typically between £10-50m to be advanced through a fully discretionary fund vehicle.
Significant flexibility exists to structure facilities appropriately according to the transaction, including transitional/development, restructuring and acquisition/growth capital. As an illustration this enables monies to be drawn in stages and interest to be serviced current or rolled up. Up to 100% loan-to-cost can also be facilitated.
A £50m facility was closed in May 2015 - the first originated by Voltaire for the fund partner - with a further £200m currently in the pipeline.
All real estate asset classes will be considered including residential, office, industrial, care, social housing, hotel, land and development. Appetite also exists for other hard and financial assets such as invoices, claims and distressed loans.
Voltaire have been specialising in equity for some time as demand has increasingly seen requirements for this type of finance, particularly for residential developers.
Our access to a suite of equity finance sources allows for shortfalls to be met between the necessary ‘hurt slice’ being introduced by the developer and the (stretched) senior loan. This capability is increasingly allowing us to successfully unlock the fundability of good quality transactions by completing the capital structure. Our special relationships with a number of equity investors allows us to assess on a deal by deal basis where an investor’s appetite lies, what is the return structure and where the flexibilities exist.
With the support of a dedicated pot of £25m with further funds available as needed, Voltaire Equity is actively seeking requirements for equity and joint venture funding up to £10m per project, with higher injections available on a deal by deal basis.
- Strong appetite for residential development transactions
- Up to 90% of the funding shortfall behind first charge debt
- Equity injections from £500k - £10m*
- Priority return or pari passu with developer
- Loan term typically up to 36 months
- Normally, no personal guarantees or additional security required
- Full detailed planning typically but not always required
- Strong development track record essential
- Higher injections are available on a deal by deal basis.
Voltaire Equity will typically source equity from high net worth individuals, private family offices and dedicated real estate private equity funds, as well as occasionally utilise an injection from its own funds.