Allica Bank makes bold move into bridging finance with Tuscan Capital acquisition

In a strategic expansion of its financial services, Allica Bank has announced the acquisition of Tuscan Capital, marking its entry into the bridging finance sector.

The acquisition, which will see Tuscan Capital’s team integrate into Allica Bank’s operations, is set to enhance Allica’s commercial finance portfolio. Tuscan Capital’s established bridging expertise and extensive broker network will be leveraged to bolster Allica’s new bridging finance offerings, including semi-commercial and full commercial bridging alongside Tuscan’s well-regarded residential bridging products.

A New Era for Bridging Finance at Allica Bank

Allica Bank, known for its rapid growth and innovation in commercial finance since its inception in March 2020, has already lent over £2 billion to businesses. The bank, which has garnered several awards and was recognized as the fastest-growing company in the UK by The Sunday Times, is now poised to extend its influence into the bridging finance market.

The acquisition of Tuscan Capital allows Allica to diversify its financial services further, integrating bridging and refurbishment finance into its suite of offerings. The move is expected to strengthen Allica’s position in the market, capitalizing on its existing distribution network and substantial funding base.

Strategic Appointment of Justin Trowse

To spearhead its new bridging finance division, Allica Bank has appointed Justin Trowse as Head of Bridging. Trowse, who previously served as Director of Structured Property Finance at LendInvest, brings a wealth of experience in high-value and complex property transactions. His previous roles included leading LendInvest’s bridging finance products and playing a key role in the company’s development finance operations. Trowse was also recognized in the B&C Power List in 2021, highlighting his significant industry impact.

Tuscan Capital’s Proven Success

Founded in 2018 by Colin Sanders and Ed Parsons, Tuscan Capital has swiftly built a reputation for excellence in the bridging finance sector. The company was awarded Best Newcomer at the Bridging & Commercial Awards in 2019, reflecting its commitment to service and efficiency. Sanders, who previously served as CEO of Omni Capital/Fortwell Capital, and Parsons, who was Tuscan’s Chief Financial Officer, established Tuscan with the vision of revitalizing the bridging market through enhanced speed and decisiveness.

Industry Reactions and Future Plans

Colin Sanders expressed optimism about the acquisition, stating that the alignment of Tuscan Capital’s vision with Allica Bank’s approach promises significant benefits for the team, their intermediary partners, and the broader SME community. He highlighted the opportunity to accelerate Tuscan’s growth and impact within the market through the integration with Allica Bank’s resources.

Nick Baker, Chief Commercial Officer at Allica Bank, emphasized the strategic importance of the acquisition. He noted that bridging finance is a crucial but often underserved segment of the lending market. Baker believes that combining Tuscan Capital’s specialized expertise with Allica’s robust infrastructure will create a powerful synergy that addresses a critical need in the market.

Broader Implications for the Financial Sector

The entry of Allica Bank into the bridging finance market through the acquisition of Tuscan Capital signifies a notable shift in the landscape of commercial finance. With a focus on integrating advanced financial solutions and leveraging existing networks, Allica aims to replicate its success in commercial mortgages and asset finance. The strategic move aligns with broader trends in the financial sector, where traditional banks are increasingly diversifying their offerings to capture new market segments.

As Allica Bank prepares to unveil more details about its bridging finance proposition, the industry will be watching closely to see how this acquisition influences the competitive dynamics within the bridging finance market.