The specialist residential development lender also plans to deploy the capital across new senior debt and bridging lending strategies.
Pluto hopes to lend £500m across these three loan types over the next year and has already had over £95m of loans credit approved since the capital raise.
Four new members of staff have joined the team to support the lender’s growth plans.
“This significant capital raise provides Pluto with the firepower to continue providing market-leading loans,” said Justin Faiz, partner at Pluto.
“We are now able to provide lower leverage senior debt with interest rates from 3.95% - cheaper than the challenger banks and competitive with the clearing banks - but with a much faster turnaround time.”
Pluto’s stretch senior product will continue to fund up to 90% of costs.
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“We are the only lender to offer stretch, senior and bridging finance under one roof – turning Pluto into a real one-stop-shop for all residential development finance needs,” claimed Justin.
“We are grateful to our new and existing institutional investors for the support they are continuing to provide to our business through this important capital raise.”
Pluto entered the bridging lending market in January 2017, and, explaining the move, Andrew Blenkinsop, partner at Pluto, said: “We are delighted to be able to support our clients throughout the entire project lifecycle by providing short-term loans to assist with site acquisition pre-planning and also to refinance completed units.”
Jonathan Morgan, director of investment and developments at Galliard Homes, added: “We are delighted to continue our relationship with Pluto Finance and we are already in advanced discussions to take Pluto’s new senior loan facility on a number of projects.”