Listed closed-ended investment company Castelnau Group has secured a £65m revolving loan facility from Shawbrook to refinance an existing loan, cover associated costs, and achieve significant cost savings to support future investment.
The deal marks a milestone for Shawbrook, with over 90% of the facility drawn on day one.
Castelnau, managed by Phoenix Asset Management Partners, invests in select UK small to mid-cap private companies, taking a long-term approach to value creation by removing short-term pressures and encouraging rational capital allocation across its portfolio.
The company was introduced to Shawbrook by Ben Handler from Liberum, who recognised the bank’s expertise in structuring complex fund finance transactions.
Shawbrook’s Speciality and Fund Finance team delivered a record £65m 3-year revolving credit facility secured against the portfolio’s net asset value, enabling Castelnau to reduce costs and optimise its capital structure for future opportunities.
Richard Brown, CEO of Castelnau Group, said: “We are extremely pleased to have secured this facility from Shawbrook, which doesn’t just reduce our ongoing costs, but helps to normalise our capital structure.
“Throughout the process, Ismail and the team at Shawbrook distinguished themselves by being pragmatic, commercial, and highly responsive—a partnership approach that sets them apart from traditional banking peers and delivered a great outcome for all parties involved.
“We look forward to broadening our commercial relationship with Shawbrook going forward.”
Ismail Farhat, director, speciality and fund finance at Shawbrook, said: “Castelnau’s strong business model and track record gave us the confidence to structure a flexible facility for this dynamic investment company.
“We look forward to partnering with Castelnau’s management team as they strengthen operations and pursue further growth.”
