FINANCE: The William Pears Group has terminated a deal to sell its niche lending platform to Guggenheim Partners.
Guggenheim entered detailed negotiations to acquire Capital A earlier this year as it looked to ramp up its £250m lending platform.
However, negotiations broke down last month and the US finance house has since decided to enter the residential lending market on its own.
William Pears Group is now understood to be reviewing options for the future of Capital A.
The company is not currently investing further in the business, raising the prospect of either a rundown of the existing book or a sale to an alternative backer.
Instead it has completed a series of deals in recent weeks to invest in companies such as Mount Anvil and Tom Bloxham’s Urban Splash.
Capital A was established two years ago by former Investec bankers Daniel Austin and Jonathan Arnst and has since completed 25 deals including senior, mezzanine, acquisition, bridging and development loans.
Among Capital A’s highest-profile deals to date is a loan to Ronson Capital Partners to help fund the construction of 121 luxury flats at Riverwalk House near Vauxhall Bridge, SW1.
Capital A also funded Oakvest’s conversion of 35-37 Grosvenor Gardens , SW1, into a £200m, 42-flat scheme.
All parties declined to comment.
jack.sidders@estatesgazette.com
