Key Takeaways
- • OakNorth Bank has committed £50m in new funding to Paloma Capital, structured across two separate transactions, representing a significant expansion of the lender's relationship with the private equity real estate investor.
- • Paloma Capital, founded in 2015 by Joe Froud and Jack Pitman, has accumulated over £520m in wholly discretionary capital across three value-add funds, positioning it as a leading entrepreneurial real estate investor with institutional backing from UK, European, and Middle Eastern sources.
- • The new £50m facility will deploy into Paloma Real Estate III, which successfully closed at £201m in equity and focuses on income-producing multi-let urban industrial, logistics, trade counter, open storage, and self-storage assets across multiple regions.
- • OakNorth's continued support reflects confidence in Paloma's investment thesis, with the lender having previously provided £45m to the fund in September 2023, demonstrating a sustained commitment to the partnership.
- • Paloma Real Estate III's strategy emphasizes three core pillars: identifying mispriced assets, applying entrepreneurial asset management to capex-intensive properties, and prioritizing income generation over speculative appreciation.
Summary
OakNorth Bank, the digital lending platform for entrepreneurs, has provided £50m of fresh funding to Paloma Capital, a leading private equity real estate investor specializing in value-add strategies across UK and European markets. The capital injection, structured across two distinct transactions, underscores OakNorth's confidence in Paloma's operational track record and investment methodology. This latest commitment represents an expansion of an existing partnership, following OakNorth's earlier £45m revolving credit facility extended to Paloma in September 2023.
Paloma Capital, founded in 2015 by Joe Froud and Jack Pitman, has established itself as a significant institutional-quality investor, having raised more than £520m of wholly discretionary capital across three dedicated value-add funds since inception. The firm's investor base spans institutional capital from the UK, Europe, and the Middle East, indicating diversified institutional backing and confidence in its operational capabilities. The firm's investment philosophy rests on three distinct pillars: identifying mispriced real estate assets, deploying entrepreneurial and hands-on asset management approaches to capex-intensive properties, and structuring returns to prioritize income generation rather than speculative capital appreciation.
The new £50m facility will be deployed within Paloma Real Estate III, the firm's current flagship fund that achieved a successful final close at £201m in wholly discretionary equity. Launched in November 2022, the fund operates with an opportunistic strategy across multiple property types and geographies, with particular emphasis on income-producing assets. The fund's investment universe encompasses multi-let urban industrial and logistics schemes, trade counters, open storage facilities, and self-storage assets. This diversification across asset classes and income-generating characteristics aligns with Paloma's stated preference for yield-focused real estate investing, positioning the fund to benefit from structural demand drivers in logistics, last-mile delivery infrastructure, and flexible storage solutions across European markets.
OakNorth's repeated commitments to Paloma Capital reflect the lender's confidence in the private equity real estate investor's execution capabilities and market positioning. The digital bank's willingness to provide cumulative commitments exceeding £95m to a single borrower within a concentrated timeframe signals strong operational performance and risk management at Paloma, as well as OakNorth's strategic focus on supporting experienced entrepreneurial real estate investors with institutional-scale capital requirements.
Paloma Capital, founded in 2015 by Joe Froud and Jack Pitman, has established itself as a significant institutional-quality investor, having raised more than £520m of wholly discretionary capital across three dedicated value-add funds since inception. The firm's investor base spans institutional capital from the UK, Europe, and the Middle East, indicating diversified institutional backing and confidence in its operational capabilities. The firm's investment philosophy rests on three distinct pillars: identifying mispriced real estate assets, deploying entrepreneurial and hands-on asset management approaches to capex-intensive properties, and structuring returns to prioritize income generation rather than speculative capital appreciation.
The new £50m facility will be deployed within Paloma Real Estate III, the firm's current flagship fund that achieved a successful final close at £201m in wholly discretionary equity. Launched in November 2022, the fund operates with an opportunistic strategy across multiple property types and geographies, with particular emphasis on income-producing assets. The fund's investment universe encompasses multi-let urban industrial and logistics schemes, trade counters, open storage facilities, and self-storage assets. This diversification across asset classes and income-generating characteristics aligns with Paloma's stated preference for yield-focused real estate investing, positioning the fund to benefit from structural demand drivers in logistics, last-mile delivery infrastructure, and flexible storage solutions across European markets.
OakNorth's repeated commitments to Paloma Capital reflect the lender's confidence in the private equity real estate investor's execution capabilities and market positioning. The digital bank's willingness to provide cumulative commitments exceeding £95m to a single borrower within a concentrated timeframe signals strong operational performance and risk management at Paloma, as well as OakNorth's strategic focus on supporting experienced entrepreneurial real estate investors with institutional-scale capital requirements.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.