Asset manager and commercial lender Arbuthnot Latham has set out plans to launch a secured lending division, as the six-month-old ABL division writes its third deal.
The ABL business was born out of the acquisition of Renaissance Asset Finance, and underwrote its first deal in May.
It subsequently provided a £12m (€13.4m) facility to investment firm Sullivan Street to acquire landscaping company Tivoli, and earlier this month financed home retailer Scotts and Co. with an invoice discounting and stock funding line of undisclosed size.
In its half-yearly results to June, parent the Arbuthnot Banking Group said it was launching a “specialist secured lending business”, without providing further details on how it will differ from the ABL division.
A spokesperson for the group told Leasing Life the division was still building its team, and would target small-scale property developers.
Arbuthnot reported group profits of £3.5m for the six months to June, a 40% year-on-year growth, with a 25% increase in customer loans, which surpassed £1bn. The group also earned £2.3m in income through its 18.6% share in Secure Trust Bank.
Henry Angest, chairman and chief executive said: “The group has continued to develop. The asset-based lending business has commenced trading ahead of schedule.
“Given the continued growth and diversification of the group, I believe our long-term prospects are encouraging.”