The funding is an extension of a pre-existing partnership established two years ago and builds on the £350m that Aros Kapital has already committed to Assetz Capital.
The investment will allow grow Assetz Capital’s ability to finance SMEs across a number of sectors, including growing its existing development finance offering for housebuilders and the provision of commercial mortgages.
Both companies said that the extension of its partnership illustrated their long-term commitment to building a “sizeable presence” in the UK SME finance market and that it would help support the country’s post-pandemic economic recovery.
In February, parent company Assetz group said that it wanted to increase its lending in the SME business sector to £1bn in 2022 and £1.5bn in 2023.
It added that it would up its investment in SME housebuilders via Assetz Capital, and that the subsidiary is aiming to fund a quarter of all SME new-builds over the long-term.
Stuart Law (pictured), chief executive of the Assetz group, is thrilled to extend the relationship. He said: “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, chief executive at Aros Kapital, added: “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. We are excited to see what we’re able to achieve together going forward.”
Both firms added that they are also committed to making donations from the profits of their partnerships to relief organisations working in Ukraine on the ongoing conflict.
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