The lender said this would strengthen its capital position, widen its shareholder base and expand its funding capacity. It will also improve its ability to support SME property developers in the UK.
The management buyout process and capital raise were led by the lender’s CEO, Shahil Kotecha (pictured, middle) and capital director PakSan Wu (pictured, right).
Graham Emmett (pictured, left) has also become a non-executive chair as part of the transaction.
The debt facility and equity investment are valued at over £100m and will enable Pivot Lending to offer more competitive pricing and larger loans to borrowers.
The combined management buyout and capital raise will allow Pivot Lending to increase maximum loan sizes to £15m to support larger or complex short-term finance and development schemes.
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It will also expand its development offering across residential, private rental sector, commercial, care, purpose-built student accommodation (PBSA) and hospitality.
Pivot Lending said this would also offer SME developers more flexibility and capital availability, as well as strengthen its operating systems, risk frameworks and data-driven analytics to speed up decision-making.
Kotecha said: “Foresight has been a trusted senior lender to the business for the past two years, and this deepened partnership reflects their confidence in our platform, our governance, and our long-term vision. This new capital base enables us to accelerate our growth; by scaling our loan book, expanding our product suite and enhancing our technology.”
Oliver Bates, director of Foresight Group, added: “The transaction is an important strategic investment for Foresight’s private credit offering, highlighting our ability to invest at scale and across the capital structure into high-quality specialist lenders. Pivot has built an impressive presence in the development finance market and we are delighted to back a team with strong sector capability and a clear vision for market leadership.
“We look forward to supporting Shahil, Graham, PakSan and the wider team as they accelerate growth and broaden their offering to developers across the UK.”
