Swan Group has secured a growth capital investment facility with the help of Conduit Finance to accelerate their growth.
The five-year equity facility was provided by an institutional funder who is focused on backing real estate businesses that occupy niche positions in scalable markets and represents an initial £50m of growth capital facility.
The funding will also help us deliver our strategic growth objectives more quickly. It’s been a pleasure to work with Jamie and Jason on this transaction and we look forward to partnering with Conduit Finance in the future,” said Phil McGinlay, Swan Group Managing Director
Since 2013 Swan Group has been developing high-quality affordable housing for their partners which includes housing associations and local authorities.
The capital will help accelerate the development of over 3,000 affordable homes across the UK with an estimated Gross Development Value (GDV) in excess of £420m.
Conduit’s role consisted of helping the business transition to a more streamlined capital structure. As part of their support for Swan Group, Conduit sourced the investment partner, developed the investment pack and managed the transaction deliverables.
Jamie Davidson, Managing Director at Conduit Finance said transferring from a time consuming, and cash intensive, SPV (Special Purpose Vehicle) by SPV funding Model, to a corporate grade facility will allow Swan Group to focus on building more houses.
“We’re proud to be able to assist a business which is having a positive impact on society. We look forward to supporting Swan Group during this next period of growth,” he said.
Pictured: Jamie Davidson (left) & Phil McGinlay