New student accommodation lending platform Kinetic Capital launches with initial GBP100 million commitment
Kinetic Capital Limited, a specialist lender in the purpose-built student accommodation (PBSA) sector, has now launched with an initial capital commitment of GBP100 million.
Kinetic Capital is led and co-founded by Steve Grant, ex Chief Executive Officer of Global Student Accommodation Group (GSA) and Nicholas Porter, founder and Chairman of GSA. Steve and Nicholas bring nearly 50 years of experience in this alternative asset class with an unparalleled track record in the sector.
Kinetic Capital is committed to providing market-leading financing solutions to PBSA owners, developers and operators. The business will be based in the UK and will initially focus on the UK and Irish markets, with plans to expand internationally in the near future.
The vision is to be the leading provider of PBSA financing globally. The management team understands better than anyone the challenges PBSA owners, developers and operators face and can provide innovative financing solutions tailored to their needs. The Kinetic Capital team will combine strong trusted sector relationships with deep knowledge and an agile approach to identify, underwrite and execute transactions efficiently in order to deliver significant market opportunities.
Kinetic Capital will offer a full suite of financing options including whole loans, mezzanine debt, bridging finance and preferred equity, lending against development or investment properties. The business has already secured seed capital for its first specialist debt vehicle, focusing on the UK and Ireland.
Steve Grant, Chief Executive Officer, Kinetic Capital, says: “As the only specialist PBSA lender, Kinetic Capital has an unrivalled ability to assess and underwrite PBSA transactions. The business already has a strong pipeline and we are also seeing good demand from investors looking to gain exposure to a focused debt vehicle with an expert manager.
“The resilience of higher education continues to underpin the PBSA market, providing for strong demand and growth in the sector. Investor appetite for secure, high yielding revenue streams supported by the growing global student population, translates to a positive outlook.
“Market conditions combined with the robust nature of PBSA, present a clear opportunity for our strong team to scale the business, using its unique position to deliver significant value to both borrowers and investors.”
Nicholas Porter, Chairman, Kinetic Capital, says: “We are a global pioneer in PBSA and a trusted partner to leading debt and equity providers in the space. We see Kinetic Capital as a natural extension to our core capabilities, allowing us to build upon our deep sector relationships and strengths in the market, and we are excited about the opportunities ahead.”