Paragon Banking Group’s newly-created Structured Lending team has got off to a strong start, developing a robust pipeline of future opportunities following its first high profile deal with SME funding provider Liberis.
Ambitious specialist banking group Paragon expanded its product set in October last year to gain additional exposure to lending areas it knows well as a principal and to adjacent markets.
Pipeline opportunities originate from a variety of sectors including property, retail point-of-sale, auto, asset finance and broader SME lending. The team is also working on opportunities in the auto and asset finance sectors as part of its plans to become a leading player in the mid-term.
Paragon provides senior secured funding to help other UK-based, non-bank lenders grow their activities. Its inaugural facility saw Paragon work with UK Government-sponsored British Business Investments to provide up to £17.5m of senior debt each to small business finance provider Liberis. This was part of an overall £57.5m funding package, which will help to support UK small businesses and protect an estimated 100,000 jobs by 2020.
Paragon’s structured lending is led by Adam Daniels, who has 30 years’ experience of the UK specialised lender market. He brings extensive knowledge from a career that includes experience as a M&A adviser, acquiring businesses as a principal whilst at GE Capital and establishing and running a global specialist finance coverage team at Lloyds Bank.
Adam has been joined at Paragon by Lewis Fitzsimons and Jamie Pickering, two of his former Lloyds colleagues, both with extensive experience in the Structured Lending arena.
Adam Daniels, Managing Director – Structured Lending at Paragon Bank said: “There has never been more to play for as a direct lender or a supplier of wholesale funds to other UK lenders. Demand from UK consumers and SMEs remains strong, allowing traditional client-focused and technology based lenders to prosper.
“The opportunity to establish a new ‘wholesale’ senior debt provider in the UK, to assist best in class lenders build their balance sheet was compelling. This is a specialist activity so Paragon has built a team with deep knowledge and experience of the various sectors, structuring, credit risk and documentation.”
Paragon has developed a commercial lending product set, including structured lending, together with asset finance, motor finance and property development finance, to complement the existing and very well-established buy-to-let mortgage business that has been the cornerstone of Paragon for over 30 years.
The structured lending team provides funding to help other UK-based, non-bank lenders grow their activities.
Paragon is a British bank offering savings and loans to customers in the UK. Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £12 billion of assets under management and manages over 450,000 customer accounts.
Paragon Bank PLC is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.