< p>Laurence Goodman, Group Managing Director at Bridgebank Capital, has spoken exclusively to B&C to tell us more about the firm’s new funding line, future plans and expectations for the industry over the next year…

B&C: Why was Pamplona Capital Management (PMC) Bridgebank’s choice for new funding?

LG: Bridgebank Capital worked with London-based Pepper Capital Advisors to identify an appropriate institutional investor, and was provided with four sets of investment terms for consideration. We reviewed all of the proposals on their own merit, not only in terms of cost but also in relation to the relationship that could be developed with the partners now and in the future.

Pepper Capital recommended Pamplona to Bridgebank Capital as the preferred investment partner; primarily due to the longstanding relationship between the two and the fact that Pamplona had senior personnel who understood the bridging market. In addition, Bridgebank Capital would be dealing directly with Pamplona’s London-based decision makers.

Pamplona was equally eager to invest into Bridgebank Capital as, through their highly detailed due diligence on us, the firm was particularly impressed with our processes and systems and the experience and knowledge of our underwriters, which demonstrated that the existing loan book was of an excellent quality. 

Our medium term strategy - to grow lending activity without capital constraints - was a factor that Pamplona recognised as a key development prospect, realising that this strategy would see the company grow from strength to strength whilst also delivering marketable capital value for shareholders.

In short, seeking an investment partner is a two-way process: we ticked all the boxes for Pamplona and equally they did for us. 

Was it part of Bridgebank’s longer term plans to secure this funding now?

LG: It has always been Bridgebank Capital’s objective to become one of the UK’s bridging loan industry market leaders whilst also developing as a multi-faceted group offering a range of niche products.

As any lender who has looked to source funding in the last three years would agree, you need to “kiss a lot of frogs” before you find the right investment partner that meets all of your requirements.

Prior to this agreement, we considered a number of options that did not match our investment and investor requirements. We also experienced false promises that didn’t deliver as agreed.

This funding has come at an optimum point for Bridgebank, allowing us to grow in a more stable and certain macroeconomic environment where undoubted growth opportunities are available to exploit.

What will the new funding allow you to do? How has it shaped your plans?

LG: It has instilled both the confidence and platform required to enable us to grow to the size that we want to be, without fear of capital limitations inhibiting us/the business. We recognise that this is a highly envious position to hold and that it is unlikely that this can be matched by many of our competitors.

As a result, we have implemented a plan to create a level of service that we believe will be the best in the sector. We have recently recruited seven BDMs and a new Head of Sales who will all be fully operational and offering support to brokers and introducers by the end of June. This team will be supported by an office-based business development support team and back office loan processing team, ensuring that the highest standards of service are provided.

We are committed to delivering a national service to brokers and borrowers whilst ensuring a personalised approach is provided by the dedicated regional BDMs. Our team has experienced growth in a period of eight weeks from a team of nine employees to one of 27, which will help to fulfil all of our expectations.

With your new dedicated Southern Region office and expanding team, does the South of the country promise to be a fruitful area of business?

LG: Bridgebank Capital has always held a presence in the South, through deal flow received from loyal broker partners. However, due to the lack of personnel dedicated to operating in this area, we were unable to offer the high level of service support demanded by brokers.

Following the recruitment of a national Business Development team, we are now in a much stronger position to exploit the Southern market, with our newly appointed field-based BDMs developing relationships with brokers. We are, therefore, expecting significant market growth south of Birmingham.

Although London is key to our growth strategy and has been established as the location of our second office, we recognise that there is still huge market opportunity outside of the M25 circle.

Are there any other areas in which you are hoping to make an impact in the near future?

LG: Bridgebank Capital has always operated as a UK-wide lender; the new investment has supported the growth of the company and a new sales support structure, providing equal weighting across all UK locations.

We are also well advanced in plans to introduce new loan products later this year and in the first half of 2014 – further details will be made available in due course.

What are your predictions for the bridging market in 2013?

LG: We are now effectively halfway through the year and, based on activity within the industry, we do not anticipate that there will be any significant changes over the next six months.

We have also undertaken in-depth market research which has highlighted that there is still substantial scope and opportunity for growth within the bridging sector. Our analysis also indicates that there may be some bridging lenders that have entered the market during the last three years which may not be “churning” their loan books to enable them to achieve further growth. It is likely that these lenders will experience new origination stagnation, thus inhibiting their expansion.