Investec Private Bank has launched a specialist lending service for the private equity sector, responding to what it says has been demand for loans in the region of £2 to £25 million.

The Private Equity Partner and Fund Finance service provides a broad range of financing facilities tailored to the private equity sector, the bank said. Its specialised lending unit has been piloting a scheme since the start of this year, closing six deals and providing more than £64 million in loan facilities to private equity professionals and firms in the UK, continental Europe and Australia. 

“Given current economic environment, and structural changes in the private equity sector, more general partners and others involved in the private equity sector are looking at ways to raise finance for a variety of different purposes,” said Simon Hamilton, private equity partner, fund finance team, Investec Private Bank.

“We believe that this will be a major growth area for us over the next 12 months and beyond,” he added.

Facilities are aimed at private equity professionals (general partners) requiring leverage to invest in their own funds; to facilitate the buyout of cornerstone investors in the management company; or to facilitate other opportunistic transactions.