UK’s digital bank OakNorth has joined forces with Fintex Capital to create a new collaboration in specialty finance. The partnership, which is already operational, has successfully deployed £20 million in joint funding, signaling strong momentum from the outset. This alliance merges OakNorth’s drive to broaden its activities in specialty finance with Fintex Capital’s extensive experience as a dedicated investor in this space over the past ten years.
Both organizations recognize the growing need to back non-bank lenders and specialist financing providers.
Their shared goal is to improve credit availability for small and medium-sized enterprises (SMEs), property owners, and consumers who often find traditional banking options inadequate.
Specialty finance encompasses lending activities that operate beyond conventional banking channels.
Fintex Capital defines it as funding solutions provided outside the mainstream banking system.
Over the last decade, the firm has invested more than £400 million in this area through senior and mezzanine structures, mainly to help specialist lenders expand their portfolios.
Its portfolio spans multiple sectors, such as SME loans, vehicle financing, buy-to-let mortgages, property bridging, and consumer credit.
Fintex has delivered consistent results across various economic conditions in the UK, Germany, and the United States.
OakNorth has established itself as a leading innovator in the UK banking sector by tackling the longstanding credit shortfall for lower mid-market companies.
The bank has a proven history of assisting specialist lenders and ambitious businesses through tailored loan-on-loan arrangements and structured finance solutions. Its broader lending activities support growth-oriented enterprises both domestically and internationally.
The complementary strengths of the two firms enable seamless origination, structuring, execution, and funding of diverse specialty finance deals.
While providing capital to other lenders forms a core element of their approach, the partnership’s vision is wider.
It includes real estate credit, asset-backed lending, cashflow-based facilities, and other intricate or opportunistic situations.
By applying rigorous underwriting standards and a flexible mindset that goes beyond standard lending practices, the collaboration aims to generate compelling risk-adjusted returns.
Mohith Sondhi, Managing Director of Debt Finance at OakNorth, said:
“Specialty finance now represents a vital segment within private credit, though it demands specialized knowledge, sector insight, and advanced structuring skills. Rob and his team at Fintex have developed a strong reputation built on expertise, quality, and trustworthiness. Partnering with them allows us to grow meaningfully in this field.”
Robert Stafler, Founder and CEO of Fintex Capital, said:
“Our combined expertise positions us well to identify, assess, and complete sophisticated credit deals across the full range of specialty finance. We are targeting transactions typically in the £10–40 million range per borrower and are eager to help quality clients increase credit access throughout the economy.”
The partnership now underscores a seemingly broader trend in private credit where specialist players fill gaps left by traditional banks. By pooling their resources and know-how, OakNorth and Fintex Capital are well-placed to support economic growth through targeted financing solutions.
