Maslow Capital creates £250m fund to buy specialist loan books

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  • 19/05/2020
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Maslow Capital creates £250m fund to buy specialist loan books
Maslow Capital is building a £250m fund to buy loan books from other specialist lenders to provide them with working capital.

 

The aim of the fund is to work with development finance providers and borrowers to acquire existing loan portfolios and provide costs to help with the completion of facilities.

The fund will also be used to refinance existing loans. 

Through the fund, Maslow said it hoped to allow a return of funds to investors, while releasing lenders from the cash flow pressures they face due to being obliged to fund live developments through to completion. 

The fund will run alongside Maslow’s existing origination business which primarily provides loans of between £5m and £150m to developers focusing on residential and student accommodation. 

Maslow is looking to allocate over £250m to acquire existing loan books worth £50m and more. 

 

Fewer redemptions

The lender said it identified funding requirements in closed and open-ended funds and structures which required a steady flow of investment to continue to fund live developments. 

Maslow said it had seen a slowdown in loan redemptions due to site closures, supply chain disruption and a lack of buyer demand caused by the current crisis, along with a “curtailment in mortgage availability”.   

Ellis Sher (pictured), CEO and co-founder of Maslow Capital, said: “While we will continue to originate and finance the delivery of ground up developments, the launch of the Maslow liquidity fund will help broaden the range of transactions we can support.  

“The pandemic has caused companies to relook at their business models and our view is that in our development funding niche, existing lenders and borrowers will be seeking alternative ways of de-risking and generating liquidity, while protecting asset values by ensuring developments reach practical completion.

“The core objectives of our debut liquidity fund is to do precisely that.”

 

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