£200m funding programme to support loans up to £5m to UK SMEs

ESF Capital and its operating subsidiary ThinCats have launched a £200m funding programme which is to be focussed on growing SME companies in order to assist them with funding for small business expansion and acquisitions. For the full picture please see the bulletin below which was issued by Insider News Media today.

Roger Mundy, Managing Director, Beardsley Theobalds. 3rd October 2017



£200m SME funding programme launched

ESF Capital and its operating subsidiary ThinCats have launched a £200m funding programme to support loans of up to £5m to UK SMEs.

The £200m funding programme consists of £30m already committed by ESO Capital, £70m concluded with Waterfall Asset Management and the balance to be provided by Waterfall and other institutional investors, subject to conditions.

All funds under the programme will continue to be invested in the form of loans through ThinCats.

The new additional investors allow ThinCats to provide certainty of funding to a diverse set of SMEs in more significant amounts.

Lending will focus on funding growing companies with asset backing and reliable cashflows, including acquisition finance, across all regions and sectors in the UK.

Damon Walford, ThinCats’ chief development officer, said: “This additional investor base will allow us to significantly increase funding for small businesses’ expansion, acquisition or refinancing plans.

“Our focus on providing amounts up to £5m based on assets and reliable cashflows means we occupy a space where traditional providers ‘can’t work’ rather than ‘won’t work’.

He added: “We have built an impressive team to service the market focussed on working alongside professional intermediaries to source opportunities and this funding ensures we are able to provide certainty to borrowers and their advisers.

“This is a significant stage in the continued development of our business, which we plan to significantly increase over the next two years and we are excited by what the future holds.”

Henrik Malmer, managing director at Waterfall, said: “ThinCats occupies a unique space in the market and we are pleased to invest in senior secured loans made to growing and ambitious small businesses, which we see as a positive addition to our portfolio.”

ESF managing director Ravi Anand said: “ESF has engaged across the institutional market and this is the first key initiative in our plans to provide significant funding to the UK SME market.

“Generating a strong and sustainable yield from providing finance for small and growing businesses is a compelling alternative to traditional fixed income investments when combined with the funding gap left by conventional lenders.”