Bank North closes deal for up to £50m senior financing facility
Manchester-based Bank North has concluded a £50m senior financing facility with London-based global asset manager Insight Investment.
The facility will support the expansion of Bank North’s early lending activities to UK SMEs.
Following on the launch of Bank North’s first ‘regional pod’ in Manchester earlier this year, the facility will support lending in additional pods expected to be rolled out in the UK next year.
Founded in 2018 with a mission to be the UK’s first truly regional bank of the modern era, Bank North received a banking licence from the UK Prudential Regulatory Authority in August 2021, alongside the close of a £20m Series A funding round.
Alantra, the independent global mid-market investment bank, advised Bank North on the design and execution of the £50m senior financing facility.
Alantra advised on the commercial and structural aspects of the transaction, supporting the Bank North team in market sounding and selection of the preferred counterparty, as well as assisting in the negotiation of final terms.
David Broadbent, co-founder and CFO of Bank North, said: “We have been delighted with the support provided by the Alantra team. This represents a significant strategic milestone for the business and is further validation of the Bank North proposition.
“It enables us to bring Bank North to the market and provide much needed support to UK SMEs, and it represents a fruitful relationship with Insight, a market leader and a high calibre partner of real strength.”
Mr Broadbent co-founded Bank North with CEO Jonathan Thompson.
Jeremy Deacon, senior portfolio manager at Insight Investment, said: “UK SMEs are a significant focus area for our secured finance strategies.
“Supporting and scaling growing businesses such as Bank North helps us to source the risk-adjusted returns that we seek for our actively managed portfolios.”
James Fadel, managing director at Alantra, said: “We are extremely pleased to have advised Bank North on the execution of this important transaction.
“This facility further validates Bank North’s attractive product proposition and supports the team’s ambitions to shake up the UK SME lending market.”
David Rochow and Francesco Confuorti were key members of the Alantra team dedicated to this transaction. The Bank North team was led by Matt Dobson, Treasurer, and Martin Elliott.
