Your questions answered
Who is Reditum Capital?
- Reditum Capital is a London-based boutique financier, offering a range of tailored financing solutions across the capital structure. We focus on providing debt capital backed by hard assets such as real estate, equipment and land, both in the UK and abroad.
Reditum Capital was started by its founder and owner, Mark Stephen, in 2013. Mark wanted to step away from rigid and prohibitive lending structures and approach projects as a partner rather than as a lender, while still employing the necessary protections to feel secure as an investor.
Since inception, Reditum Capital has sourced and funded over £430m of projects and continues to be very active, seeking out investment opportunities across the asset-backed landscape.
Is Reditum Capital a fund manager?
- Reditum Capital is not a fund manager – we commit our own capital to each of our projects and offer outside investors the opportunity to participate alongside.
We believe this is the most beneficial structure for our investors, as it allows them to decide on the projects that best suit their needs while simultaneously spreading their risk across a variety of ventures and asset classes. We work primarily with high net worth individuals, family offices and a range of institutional investors.
What is Reditum Capital’s investment philosophy?
- At Reditum, we want to lend our expertise, not just our capital. Our team’s background in asset-backed funding allows us to gain comfort in situations from which other investors shy away.
We employ an “asset first” methodology at Reditum, focusing principally on the underlying asset underpinning our investment. This allows us to have an objective and prudent approach to capital allocation with continuous consideration of the downside risk of each of our projects. We have found this approach has allowed us to take advantage of numerous market inefficiencies resulting in attractive, asymmetric return profiles for investors.
How does Reditum Capital typically choose its investments?
- All our projects undergo rigorous analysis based on their fundamental factors before any capital structure considerations are made – this ensures that each of our projects has a clear business case with which we are comfortable. Thereafter, we carefully adjust the scheme’s capital structure to optimise the project’s risk and return.
Although human capital is an important part of any of our business ventures, we choose to focus much of our attention on the underlying assets supporting our capital. We approach each of our investment opportunities with prudence, and an emphasis on the underlying assets helps to assess the margin of safety in our investments. This approach enables us to have a clear handle on any potential downside risks.
What are Reditum Capital’s return targets?
- We typically target a return of no less than 12% per annum (or equivalent) for outside investors. However, at Reditum we pride ourselves on offering flexibility and maintain a continuous dialogue to find the optimal solution for all stakeholders.
What makes the Joint Venture structure so appealing?
- At Reditum we believe that lenders and borrowers both do better working together, rather than against one another. Much of the competition believes that the best strategy is to restrict borrowers with stringent covenants and rigid lending structures – at Reditum, we work differently.
We concentrate on working with the best partners with long track records of stellar operational performance. We believe in working with borrowers to ensure the success of both our operational partners, outside investors and ourselves.
How does Reditum Capital typically structure its investments?
- We always structure our investments such that we are subordinated to external investors, thereby providing an extra layer of security for them from a capital structure perspective.
We believe that this shows investors that we are seriously committed to our projects and are confident in both the business case and in the safety of the venture’s underlying assets.