The reorganisation of the leading short-term lender involves Cheval Bridging Finance being acquired by a new parent company, Cheval Holdings Ltd, which is owned by a consortium of investors and Cheval’s management.
The change will result in the company benefiting from a significant capital injection by the new owners and the renewal of the group’s existing primary funding facility with Clydesdale Bank.
Non-executive chairman of Cheval Holdings, Dennis Levine, who has had a successful career in asset-backed lending, said: “The new investors are delighted to be the owners of one of the most well-known and respected brands in the bridging finance industry and see a bright future ahead. The management of the company have demonstrated an ability to lend successfully in tough market conditions and we aim to build on this by reinforcing Cheval’s leading position in this sector.”
Gavin Diamond, Group finance director, said: “This transaction demonstrates the strength of the underlying business and is the shot in the arm that will enable us to take the business on to the next level by making full use of the opportunities presented by the lack of liquidity in the mainstream lending market.”
