OakNorth Bank completes first subscription facility for London equity firm

Business lender OakNorth Bank has completed its first subscription facility to a London-based private equity specialist.

The bank, powered by OakNorth, has approved over £650m in new loans to support a hotel development, a fund buy-out and a nursery expansion.

Of the £650m, £230m are through the government’s Coronavirus Business Interruption Loan Scheme (CBILS), and the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Founded in 2007 by Marco Capello and Emilio Di Spiezio, Bluegem Capital Partners is a London-based private equity firm focused on staple consumer brands.

Emilio Di Spiezio Sardo, co-founder of Bluegem Capital Partners, commented: “This deal showcases the breadth of Mohith and the OakNorth Bank team’s understanding of the Funds Finance space, ability to provide a bespoke facility and the bank’s overall spee.

“[It is] a truly unparalleled experience to see a lender turnaround a deal in just a few weeks, even in these unprecedented times.”

Mohith Sondhi, senior director of debt finance at OakNorth Bank, added: “Bluegem are a fund with considerable experience who have an excellent track record. It was a delight working with them, Glendower and Marlborough Partners.

“With this facility we were able to demonstrate how our bespoke funding solutions apply to funds just as much as SMEs. At a time when most lenders are receding from the market, we’ve continued to support businesses and have approved over £650m in new loans since the beginning of lockdown.

“I look forward to strengthening our relationship with Bluegem Capital Partners, as well as supporting their future endeavours.”