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akNorth, a digital bank catering to entrepreneurs, has provided £50m in new funding to Paloma Capital, a leading private equity real estate investor. Founded by Joe Froud and Jack Pitman, Paloma Capital has raised over £520m since 2015 through three value-add Funds, primarily from institutional investors across the UK, Europe, and the Middle East.

    The firm's investment strategy focuses on mispricing, capex-intensive asset management, and income-driven returns. OakNorth's £50m funding will be allocated to Paloma Real Estate III, which successfully closed at £201m in wholly discretionary equity last year. The Fund has an opportunistic approach, investing across sectors and regions, with a focus on multi-let urban industrial and logistics schemes.

    Paloma Capital's Founding Partner, Jack Pitman, praised OakNorth for its hands-on approach to asset management and expertise in fund finance. He noted that the bank's experience and speed made them the obvious choice for the new funding. Mohith Sondhi, Senior Director of Debt Finance at OakNorth, highlighted Paloma Capital's strong reputation and track record, spanning over a decade across three value-add funds.