Bank for entrepreneurs provides £40m to support developing portfolio of London pubs

OakNorth Bank, the UK bank for entrepreneurs, by entrepreneurs, has provided Zetland Capital, the London based private equity firm, with a £40m facility to acquire and expand its portfolio of pubs operated by Portobello Starboard.

Zetland Capital focuses on investing in mid-market European special situations across a wide range of sectors with a focus on tangible assets. Its portfolio of pubs is operated by Portobello Starboard, the pub operating company led by industry heavyweight Mark Crowther.

With the loan from OakNorth Bank, Zetland Capital will provide the financial support to grow its portfolio of high-quality freehold pubs through acquisitions across London and the south of England, starting with five, including three in Brighton.

The portfolio includes the flagship Westow House in Crystal Palace, which has recently added 22 en‐suite bedrooms, along with other locations including Effra Social in Brixton and Pratts & Payne in Streatham.

Deepesh Thakrar, senior director of debt finance at OakNorth Bank, commented: “At OakNorth Bank, we don’t take a broad-brush approach when it comes to analysing a business.

“Even in challenged sectors, there will always be strong businesses, so we see this as a good opportunity to support a strong sponsor with a portfolio of pubs in good locations, run by a well-regarded operator.”

Mark Crowther, executive chairman of Portobello Starboard, added: “We are delighted to have completed this acquisition and to partner with Zetland Capital. Zetland’s backing will enable us to invest in these great pubs and our fantastic teams, supporting the recovery and to acquire further pubs in the South of England.

“Given the challenges pubs have faced over the last two years, there aren’t many lenders who would consider supporting the sector at the moment.

“However, through looking at the portfolio’s past performance, as well as taking a forward-look view of its future potential, OakNorth Bank was able to put together a facility which will keep these pubs thriving and enable us to further expand the portfolio.”

Westfort Advisors advised Zetland Capital on the transaction.