CapitalRise Secures Additional £20m Funding Line Boost from Investment Firm

This story was originally published in Development Finance Today.

The additional funding – agreed with an established UK investment firm – further increases the existing funding line to £50 million, and will be deployed against prime property projects across London and the South East.  This announcement follows strong overall growth in CapitalRise’s diverse funding sources, as the firm continues to see high market demand for specialist development finance

This is the second consecutive facility increase that has been agreed over the past 12 months. Having initially increased the funding line by 50% to £30 million in the first few months of 2024, the firms have now agreed to expand the funding line again to £50 million. The additional capacity within the facility will enable CapitalRise to respond to continued high demand for development finance. This also reflects the ongoing strength of CapitalRise’s relationship with this institutional partner, which began just over 2 years ago.

Since securing this latest funding increase, CapitalRise has already generated a strong pipeline of upcoming loans and is looking to complete on over £29 million worth of facilities in both London and the Home Counties in early 2025, with this institutional partner alone.

This funding line boost follows strong overall growth in CapitalRise’s lending capacity from a robust and diverse range of sources – with the firm benefitting from a 290% year-on-year growth in institutional capital in the last 12 months. This increased facility complements funding lines from other institutional partners – including a £30 million facility for bridging loans that CapitalRise signed in July, and a £250 million funding line that was announced in early 2024. With sizable funding resources to draw on, CapitalRise is committed to meeting the high market demand it is seeing for specialist development finance.

CapitalRise brings unique sector specialism to the funding partnership via its presence in the prime development market. Since it was founded in 2016, CapitalRise has offered specialist funding for all stages of residential prime property projects – from acquisition, development, and sales period finance. Having been founded by experienced property developers, the firm can offer cost-effective property financing that’s faster, simpler and more flexible than traditional sources of capital.

Uma Rajah, CEO and Co-Founder of CapitalRise, commented:

“Securing this £20 million funding line increase further supports the diversification of our capital sources, which helps to ensure our robust funding model. We are thrilled to continue working closely with this funding partner as part of our continued commitment to serving our clients with tailored financial solutions.”

Pip Lashko-Sayers, Director (Capital Markets) at CapitalRise, and who was instrumental in securing the funding line increase, added: 

“The funding line boost not only helps us meet the growing demand for specialist residential development finance – but also builds on our strong partnership with this renowned UK investment management firm, with whom we have had a relationship for the past 2 years. Having completed many transactions together already – and with more in the pipeline – it is great to build on the relationship with this latest increase. We look forward to continuing to offer bespoke and competitive solutions to prime property borrowers together.”