Assetz Capital secures £1bn funding from Aros Capital for SME lending

Over the next three years, Aros Kapital will invest a minimum of £750 million of funding for Assetz Capital to provide UK-based SMEs with property-backed loans, in addition to £350m already committed.

The additional funding will enable Assetz to offer a range of products, with loans ranging from £150,000 to £20 million.

The funding will help facilitate the provision of commercial mortgages to SMEs, particularly within the highly important care and supported living sectors, and will enable Assetz to continue to support the reinvigoration of the SME housebuilder market via development finance loans.

As part of its 2022 strategy, Assetz has outlined its intention to increase its annual lending run-rate to £1 billion.

To date, the Assetz group has funded £2.5bn of new housing – equating to 16,000 new homes – through its partnerships with retail and institutional investors, supporting 1,110 SMEs across the country.

Aros Kapital provides loans, invoice financing and leasing for SMEs, working with the European Investment Fund (EIF) to expand its reach in the Nordic countries. The business’ relationship with Assetz Capital is part of its strategy to expand into the UK SME finance market.

Stuart Law, CEO of the Assetz group, said: “We’re thrilled to extend our relationship with a long-term partner that matches our passion for supporting SMEs through provision of innovative finance solutions. Like us, Aros is keen to be at the forefront of providing financing for businesses seeking to address important challenges, including encouraging the use of modern methods of construction for housebuilding to ensure improved environmental sustainability and meet broader market needs. We believe this relationship will be instrumental in ramping up our funding lines and meeting our objective of funding a quarter of all SME new-builds over the long term.”

Gustav Rocklinger, CEO at Aros Kapital, added: “We are delighted to be extending our relationship with Assetz Capital following the success we have had over the last two years, providing hundreds of millions of pounds worth of funding for UK SMEs through the CBIL scheme. We see this as a long-term partnership based on a mutual desire to support SME growth in the UK and promote innovation in key sectors such as housebuilding and are excited to see what we’re able to achieve together going forward.”