TowerBrook-backed Précis Capital debuts

Development lending platform Précis Capital Partners, which is backed by TowerBrook Capital Partners, has launched.

Development lending platform Précis Capital Partners, which is backed by TowerBrook Capital Partners, has launched. UK-based Précis Capital will provide financing solutions to real estate developers for projects.

PRESS RELEASE

2 March 2020, London, UK – Development lending platform Précis Capital Partners (“Précis Capital”) today announces its launch, with the backing of international investment management firm TowerBrook Capital Partners (“TowerBrook”). Précis Capital will deliver effective financing solutions to real estate developers for projects across the UK, predominantly for residential and other living asset classes. The new platform will originate, underwrite and manage Whole Loans of £50m+ to finance the construction of residential for sale, Build to Rent, retirement living communities, co-living spaces, student accommodation and other residential assets, with a view to providing up to £1bn of development financing a year.

Précis Capital is led by its three co-founders Randeesh and Daljit Sandhu, who each have nearly two decades of experience in real estate finance, and Karen Dunstan, an experienced real estate finance lawyer who will act as General Counsel. Randeesh and Daljit pioneered the non-bank lending sector’s emergence as a vital source of capital for the UK real estate industry following the 2008 financial crisis. As co-founders of real estate financier and asset manager Urban Exposure Plc, they extended approximately £2bn of development financing from 2010 onwards. Karen previously served as General Counsel of Urban Exposure, after starting her career as a lawyer at King & Wood Mallesons, Herbert Smith LLP and Charles Russell Speechlys.

The wider Précis Capital team comprises real estate finance, private equity and banking professionals, including Frank Strauss as Chairman and Susan Geddes as Director and Credit Committee Chair. Frank is a seasoned financial services executive with 30 years’ experience and was formerly Global CEO, Private and Commercial Banking on Deutsche Bank AG’s Management Board. Susan was formerly Managing Director, Structured Real Estate Finance at Santander UK Corporate Banking and Managing Director, Head of Structured Finance with Alvarium RE and spent 19 years at Bank of Scotland, latterly as Head of Real Estate Finance.

In alignment with TowerBrook’s industry-leading B Corp certification as an investment manager committed to responsible business practices, Précis Capital will seek to integrate sustainability and social impact into its product and service offering. The new lending platform will actively measure the Social Value impact of the projects it finances. Alongside traditional development finance products, it will offer loans tailored for sustainable building practices by developing Green Finance products – aligning loan terms to the achievement of pre-determined sustainability performance targets.

“A chronic funding shortfall has been among the biggest contributory factors to the structural imbalance within the UK housing market we are seeing today,” said Randeesh Sandhu, co-founder and Chief Executive Officer at Précis Capital. “Increased volumes and more efficient delivery of private development financing are a fundamental prerequisite for bridging the gap between the longstanding and fast-growing demand for housing in the UK and the supply currently delivered by homebuilders. We are extremely excited to be drawing on our experience and partnering with TowerBrook, with their proven history of backing specialist financing platforms such as Hayfin Capital Management and Ladder Capital, to meet this challenge and address the market need.”

“There is a significant opportunity for a new purpose-led approach to lending in the current market. 2021 is a pivotal moment for the UK’s construction industry and we aim to help the industry transition towards Net-Zero targets with sustainable build standards, adopt technology and embrace Modern Methods of Construction. We want to support the economic recovery, the government’s Green Agenda and the ‘levelling up’ policy programme,” said Daljit Sandhu, co-founder and Chief Operating Officer at Précis Capital.

“We have assembled a team that has experience of working at, or alongside, many of the UK’s most respected developers and investors, as well as an extensive track record of successfully structuring large and complex real estate debt transactions. Whilst we will not let up on the speed, flexibility and certainty required from a trusted lending partner, we also hope to pioneer new products and practices with and for our clients.”

About Précis Capital Partners
Précis Capital is a UK-based development lending platform that partners with best-in-class developers, real estate sponsors, banks and institutional investors to provide flexible and efficient debt financing solutions for large-scale residential projects.

Established in 2021 with the backing of TowerBrook Capital Partners and led by its co-founders Randeesh and Daljit Sandhu and Karen Dunstan, Précis Capital originates, underwrites and manages Whole Loans of £50m+ to finance the construction of residential projects for sale or rent (BTR), retirement living, co-living spaces, student accommodation, hospitality and other residential assets throughout the UK.

About TowerBrook
TowerBrook Capital Partners is a purpose-driven investment management firm headquartered in London and New York. The firm has raised in excess of $17.4 billion to date and invests in private equity and structured opportunities through its family of funds. As a disciplined investor with a commitment to fundamental value, the firm seeks to deliver superior, risk-adjusted returns to investors on a consistent and responsible basis. TowerBrook’s value creation strategy aims to transform the capabilities and prospects of the businesses in which it invests. TowerBrook is the first mainstream private equity firm to be certified as a B Corporation. B Corporation certification is administered by the non-profit B Lab organisation and is awarded to companies that demonstrate leadership in their commitment to environmental, social and governance (ESG) standards and responsible business practices. For more information, please visit www.towerbrook.com.