Victory Park Capital recapitalises troubled Oakam in £6m round
VICTORY Park Capital (VPC) and new investors are putting £6m into one of the investment trust’s holdings, troubled UK digital lender Oakam.
VPC put Oakam into administration in February due to liquidity constraints from a delayed equity raise and unsecured liabilities.
However, Oakam exited administration on 28 June after going through a compulsory voluntary arrangement and receiving confirmation from the Financial Conduct Authority that it could restart consumer lending activities.
The fresh capital will enable Oakam to satisfy unsecured creditors, support the company’s borrowing base and to provide growth capital, VPC said on Tuesday.
The £6m was raised together with new investors through Oakam’s funding vehicle, Akrod, and will be used to support future growth initiatives and enhance the company’s collateral.
Oakam, which markets itself as a “doorstep loan alternative”, offers loans to “underbanked, overlooked” consumers, according to its website. The company aims to offer same day approval on loans between £200 and £1,750 in size.
Borrowers can take out a loan with a three, six or 12-month term, with an average interest rate of 1,421 per cent.