Small and medium-sized enterprise (SME) lender Quantum Development Finance has secured a facility worth up to £500m from Goldman Sachs, taking its total funding from £200m to as much as £700m.

The firm said the deal significantly expands its lending capacity, including the ability to offer larger loans, without changing its focus on SME housebuilders. It will also allow Quantum to fund a wider range of schemes across their lifecycle, from initial acquisition through to post-completion investment.

Founded in London in 2023, Quantum provides development and bridging finance to SME housebuilders in cities and suburbs throughout England and Wales. It offers loans of up to £35m, has financed the development of 4,000 new homes to date, the firm said.

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“Goldman Sachs’ approval of this facility is a positive signal for the Quantum team as we focus on building an alternative credit platform with bank-level operational rigour,” said Oliver Thompson, co-founder and chief executive of Quantum.

“It’s also a huge endorsement of the team we’ve built and the discipline we bring to every deal and operational running of the business.”

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Over the past 12 months, Quantum has expanded into operational real estate, including build-to-rent, purpose-built student accommodation and co-living, covering development, post-completion stabilisation and investment lending.

Funds managed by AB CarVal, part of AllianceBernstein, have backed Quantum since its launch as both a shareholder and its primary funding partner.

“We’ve supported Quantum Development Finance since day one, and this expanded facility represents an important next step in the platform’s growth,” said Rob Sinclair, principal at AB CarVal. “Quantum has built a differentiated lending model around deep borrower relationships, disciplined underwriting and the ability to flexibly support clients with agility across the lifecycle of projects.

“The expanded funding and product set should allow the team to build on that model and even better serve the needs of UK property developers and investors.”

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