New UK bank Aldermore has announced it has raised £62m in additional equity capital to fund its continued growth.Subject to FSA regulatory approval, the new funds enable Aldermore to continue to meet the strong demand for its products from both retail and small business customers. The transaction comes after Aldermore announced in July that its gross assets now exceed £1bn and that it had reached profitability. As a new entrant, Aldermore has none of the legacy issues which have dragged down valuations elsewhere in the sector.

The funds have been invested by a consortium of leading global investors, including funds managed by Goldman Sachs Asset Management, Honeywell Capital Management and the Ohio Public Employees Retirement System. Funds advised by AnaCap Financial Partners LLP (AnaCap), Aldermore’s existing lead investor, have also increased their investment in the business and Morgan Stanley Alternative Investment Partners, Aldermore’s founding investor alongside AnaCap, also retain their significant investment.

Phillip Monks, Aldermore’s chief executive, said: “We are delighted with the strong support shown by these blue-chip investors for our funding round and for the continued support from both AnaCap and Morgan Stanley. This investment gives us an excellent platform for continued growth and to offer real choice and competition in the UK banking market.”

Peter Cartwright, co-managing partner of AnaCap and non-executive director of Aldermore, said: “We are proud of the group of investors that has been assembled to support the continued growth and development of Aldermore and are collectively excited by the substantial commercial opportunity that remains available to Aldermore as high street banks continue to neglect significant sectors of the UK banking market.”

Article contributed by Asset Finance International