Laxfield Capital has launched a small-ticket lending programme in the UK.
The London-based company said its Laxfield National division would provide loans of £1m-30m (€1.3m-40m), with funding coming from two institutional investors.
The fund will finance various asset types, lending up to 70% loan-to-value ratio, covering repositioning and operational assets, as well as income-producing property.
Adam Slater, managing director at Laxfield, said: “We have been quietly testing this market for the past six months to determine the returns available and depth of demand for finance.
“Borrowers have been very positive about our quick decision-making, which helps support them in a competitive acquisition process, and the opportunity to work with new lending capital in this area.”
Two new staff have been hired by the firm.
Bryan Hawkins, previously a director at RBS, joins as a transactions director and will lead origination for Laxfield National.
Sumeer Bose, previously at Nationwide Building Society, joins as an analyst covering loan origination and debt advisory.
Slater said: “Our data has been pointing for some time to increased activity in the smaller loans market, and there is demand for finance with risk/return appetite sitting between the clearing banks and debt funds.”
Slater said the company had 20 loans closed and under management, with a “very strong pipeline of further deals in closing”.