OakNorth Offers Custom Capital Call to Paloma Capital

OakNorth provides a bespoke capital call facility to Paloma Capital, enhancing their private equity real estate investment strategies.

In a notable development within the financial sector, OakNorth, a digital banking institution tailored for entrepreneurs by entrepreneurs, has recently extended its capital call facilities to two funds managed by Paloma Capital. Since its inception in 2015, Paloma Capital has successfully amassed over £450 million in wholly discretionary capital across three value-add funds, primarily attracting institutional investors from the UK, Europe, and the Middle East.

The firm’s investment philosophy is intricately woven around three foundational pillars: a discerning focus on market mispricing, an entrepreneurial approach to capital expenditure-intensive asset management, and a strategic inclination for generating the majority of returns through income rather than capital appreciation. This nuanced strategy reflects a sophisticated understanding of the market dynamics at play.

The bespoke capital call facility provided by OakNorth is earmarked for deployment within Paloma Real Estate Fund II, which boasts a diversified portfolio comprising 34 individual real estate assets strategically located throughout the UK. Launched in September 2018, this fund is not merely a collection of properties; it is a fully invested entity, with a remarkable 87% of its capital committed to the burgeoning multi-let urban industrial and warehouse market.

In a landscape where financial acumen and strategic foresight are paramount, the collaboration between OakNorth and Paloma Capital underscores a shared commitment to fostering entrepreneurial ventures and optimizing asset management in an ever-evolving economic environment. As the market continues to fluctuate, the implications of such partnerships may well serve as a bellwether for future investment strategies within the real estate sector.