Newstead Capital

This strategy focuses on providing funding to specialty finance companies to grow their lending business secured by granular loan portfolios or providing acquisition finance to sponsors. As bank finance is retrenching from many areas, European markets are seeing an increase in specialty lenders who are dependent on third party funders and capital markets.

The Newstead team has experience in lending against loan portfolios with varying underlying collateral including real estate, SME, receivables, secured and unsecured consumer loans and across the capital structure (Senior, Mezzanine and Equity).

The Team has executed many funding solutions to enhance investor returns with efficient term structures.

This strategy focuses on acquiring loans via forward flow agreements from specialty finance companies and non-bank lenders. Since 2014, the team has acquired and securitised over £3bn of consumer and SME loans, invoice receivables and mortgages in the UK and USA.

The strategy may also involve acquiring existing portfolios to capitalise on situations where a lender may be facing balance sheet constraints or deleveraging pressure. Based on its portfolio analytics and valuation capabilities, Newstead is able to select pools with good risk-reward prospects and offer competitive bids for the sellers.

The Newstead team focuses on niche asset classes rather than widely marketed and overbid markets.