Venture capital debt is becoming increasingly popular with high-growth technology companies around the world in recent years. While the asset class is highly developed in the US, the subprime lending market is in its infancy in the UK
Betting big on untapped potential, UK-based alternative investment fund manager Shine Credit Partners unveiled its first £75m tech-focused venture debt fund. The fund will invest in senior secured loans with equity warrants to venture capital-backed companies in the UK SaaS and fintech sectors
The fund will target borrowers with recurring annual incomes of at least £2m, who are finding it increasingly difficult to secure long-term funding from traditional lenders. Typical loan sizes will be between £2m and £6m per borrower, with maturities of up to five years. It will make approximately 15 investments per year during the three-year investment period.
According to the company, the fund has already completed two investments with total commitments of £6.5m before the first close. This included the fund’s first release in December 2021, PassFort.
Guillaume Chappel, Head of Venture Debt for Shard Credit Partners, said, “We will continue to support fast-growing companies in the software-as-a-service and fintech sectors. We aim to become the go-to debt provider for high-growth, venture capital-backed technology companies in the UK.”
Alastair BrownCEO of Shard Credit Partners, concluded: “The launch of our first technology venture capital fund in the UK, just one year after the launch of this unique strategy, strengthens our position as a specialist private credit manager in the direct loans in the UK and continental Europe.