OakNorth, the digital bank built for entrepreneurs by entrepreneurs, has provided £50M in new funding to Paloma Capital, a leading private equity real estate investor and returning customer.
Founded in 2015 by Joe Froud and Jack Pitman, Paloma Capital has raised over £520M in discretionary capital through three value-add funds, attracting institutional investors from the UK, Europe, and the Middle East. The firm’s investment strategy is rooted in three core principles: identifying mispriced opportunities, an entrepreneurial approach to asset management, and a focus on generating returns primarily from income.
This latest £50M funding from OakNorth, split into two transactions, will be deployed within Paloma Real Estate III, which achieved a successful final close at £201M in discretionary equity. Launched in November 2022, the Fund follows an opportunistic investment strategy across various sectors and regions, with a focus on income-producing, multi-let urban industrial and logistics properties. Asset types include urban logistics, trade counters, open storage, and self-storage.
OakNorth had previously supported Paloma Real Estate III with a £45M facility in September 2023, fueling the fund’s early growth.
Jack Pitman, Founding Partner of Paloma Capital, said:
“At Paloma, we excel in hands-on asset management and focus on multi-let properties that allow us to create additional value through strategic, well-executed business plans. After our excellent experience with OakNorth last year, where we secured a £45M debt facility, they were the clear choice for this funding. OakNorth’s fund finance team, led by Mo, is exceptional—they are experienced, efficient, and reliable.”
Mohith Sondhi, Senior Director of Debt Finance at OakNorth, added:
“Joe and Jack’s 30+ years of experience in private equity have cemented Paloma’s reputation as one of Europe’s top private equity real estate investors. With a proven track record across three value-add funds, we’re proud to support Fund III through these two transactions. We look forward to continuing our partnership with Paloma Capital and expanding our expertise in fund finance.”
This collaboration highlights OakNorth’s commitment to empowering entrepreneurial ventures and advancing innovative investment strategies in the real estate sector.
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