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Ortus completes second funding round for leisure-focused fund

London-based commercial lender Ortus Secured Finance has closed a second funding round for its new fund, increasing its firepower by GBP20 million from investors and bringing total lending capacity for the fund to GBP60 million.

The fund, which was originally launched in February 2016, lends to businesses across the UK, with a particular focus on the UK leisure sector.
The second round of funding has seen a number of original investors increase their initial stakes in the fund. It has also welcomed a new GBP5 million cornerstone investment from a global real estate investor.
The fund will continue to provide short-term finance to pubs, hotels and nightclubs across the UK – meeting the financial needs of businesses experiencing sudden spikes in demand; looking to purchase property or other businesses; or with bridging requirements for interim capital whilst re-financing.
The fund will also continue to support broader commercial property ventures in Northern Ireland, where Ortus Secured Finance plans to triple the size of its lending book by the end of 2017.
Ortus Secured Finance says the closure of the second funding round comes as banks restrict their lending to some parts of the market, in the wake of the UK’s decision in June to renounce its membership of the European Union.
Ortus Secured Finance says the elevated caution taken by bank-backed lenders is providing ample opportunities for smaller, equity-backed lenders.
Jon Salisbury, managing director of Ortus Secured Finance, says: “The closure of this second funding round is a reflection of the strong performance we have had to date – and of the confidence our investors have in our continued ability to lend to businesses in the UK leisure sector.
“Many businesses are suffering as a result of the credit slowdown instigated by the UK’s decision to leave the EU. We are delighted to be able to continue to offer them a solution with the closure of our second funding round.
“Our fund is equity-funded – and not based on bank funding lines – and we have therefore been able to absorb the shock waves caused by Brexit in a way that bank-backed bridging funds and other lenders have not.
“Our strong track-record means Ortus and its investors are able to continue to offer reliable lending solutions to businesses, despite the slight turbulence being felt in the market at present.”

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