A unique approach
A partner not a lender
We understand the challenges borrowers face when seeking finance with lenders who struggle to see a project’s true potential. At Reditum Capital, we work differently.
A boutique financier, we focus principally on asset potential, and specifically look for opportunities from which other investors shy away. Our deep understanding of asset-backed finance – and real estate in particular – has allowed us to exploit these market inefficiencies, leading to attractive, asymmetric return profiles.
As asset-backed specialists, we fund a multitude of asset classes, including property, metal and receivables, both in the UK and abroad. Our team’s extensive prior experience developing real estate has allowed us to hold an expertise in property and applying these investment principles to other asset-backed opportunities.
At Reditum, we formulate tailored financing solutions designed to unlock an asset’s true value, and our in-house decision-making allows us to do so at speed. We choose only the best partners to work with, who each have a proven track record in their respective fields. We do not believe in employing restrictive covenants or other formulaic financing criteria, and believe that such measures can often hinder, rather than help, a project. We believe in giving our partners the flexibility they need to realise an asset’s full potential.
£480m of facilities have been extended since our inception in 2013 and we believe this is a testament to the appeal of our approach.
Our target deals
Typically, we look for substantial deals (£10m+ GDV/asset value) with intrinsic complexity – because that’s when you’ll need us the most and, by definition, when we’ll add the most value.
However, our primary focus is always the same: to structure an arrangement that maximises the risk-adjusted returns on borrower capital, whilst safeguarding the interests of our investors.
A joint venture philosophy
Our customised approach means that we treat each opportunity as a business partnership, sharing in both risk and reward. Our preference is to approach all financing on a joint venture basis, allowing all incentives to remain truly aligned. By co-investing in each transaction and offering borrowers a range of attractive financing options, we enable our partners to operate free of the heavy burden of layered debt.
As a joint venture partner, we arrange the end-to-end funding solution – one that’s designed to meet each client’s particular objectives and the asset being used as security. Even more than asset potential, we believe in carefully adjusting the capital structure of each of our projects, and utilise debt intelligently to capture superior returns, while maintaining a low cost of capital.
Reditum Capital achieves superior returns by assembling an appropriate mix of senior and junior debt, mezzanine and equity, thereby minimising the borrower capital requirement and, in turn, maximising the return on capital employed.
Typical Funding Structure
Development and bridging finance
Whilst core funding transactions are typically focused on development projects, we are also willing to provide bridging finance as a necessary precursor to a full development transaction. Reditum Capital’s bridging solution is speedy, straightforward and transparent.