Cheyne Capital’s fifth real estate debt fund has invested £50m (€57.1m) into UK SME housebuilder Backhouse.
Backhouse said it has secured the capital, in the form of a joint venture, from the asset manager’s £600m Cheyne Real Estate Credit Fund V vehicle.
The funding will help Backhouse deliver 500 houses a year by 2022.
The latest partnership follows previously-formed joint ventures with the Housing Growth Partnership on two of Backhouse’s current sites in Castle Cary and Westbury, Backhouse said.
Rob Turner of Cheyne Capital will join the Backhouse board as a non-executive director, as will former advisers to Backhouse, Richard Jones and Anthony Henry-Lyons.
Launched in 2016 and headquartered near Bath, Backhouse is geographically focused on providing housing for the South West region.
The company was founded by former Deutsche Bank and Citigroup commodities banker Theodore Backhouse.
The founder said: “This is a very exciting moment in the history of the organisation. The investment is a strong endorsement of the team we have put together and what we have achieved to date.
“There is a fantastic opportunity for SME housebuilders to grow as the UK looks to achieve its ambitious housebuilding targets and we are delighted to be working with Cheyne Capital as we embark on a phase of significant growth. We believe this partnership and our design-led ethos will pay dividends as the market sees new build volumes grow and choice increase for buyers.”
Turner said: “We are excited to be supporting another high-quality housebuilding business in the UK and this investment is a testament to what the Backhouse team has already achieved.
“This joint venture once again demonstrates Cheyne’s ability to provide innovative, flexible and bespoke financing solutions to organisations focused on increasing the supply of mid-market housing in the UK with strong management teams and robust growth plans.”