Diversified real estate investment company Cain International has injected £400 mln (€447 mln) into UK specialist lender Fortwell Capital in return for a majority stake in the company.
In addition, Cain (formerly Cain Hoy Enterprises) has purchased a £80 mln (€89 mln) portfolio of development loans that Fortwell will continue to manage.
The deal is believed to be one of the largest injections of capital into a UK alternative real estate finance firm, fund or platform so far this year.
John Cole, managing principal at Cain International and head of the firm’s global debt business, said: ‘Joining forces with Fortwell enables us to continue offering larger financings through Cain International, while also entering the specialist market for small and medium sized loans under the Fortwell brand.’
This partnership will enable Fortwell, which has lent more than £1.2 bn (€1.3 bn) since its establishment in 2011, to expand its loan book.
Earlier this year Fortwell Capital was bought out by its senior management team, consisting of executive director Dan Smith and managing director Arthur Jennings.
‘Our partnership with Cain International is a huge endorsement of Fortwell Capital’s success in positioning the business as a leading alternative real estate lender in the UK,’ commented Smith.
‘It will propel us forward, providing the funding to allow Fortwell to continue to finance and work with developers to unlock complex projects throughout the market cycles.’