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Lending partnership model
Illustrative · 2026

Fund-manager lending partnership

Your capital, our origination — a secured, hurdle-protected return that scales.

Castle Trust provides the balance sheet and earns a preferred hurdle (7% bridging / 6% term). Redbourne Capital sources, underwrites and manages the lending, powered by GUMO — earning arrangement fees plus a share of the margin above the hurdle. As the book scales, Redbourne's share steps up — aligning us with your growth.

Deployed book
£250M
Tier 1 · 80 / 20 split
Castle Trust — annual return
£0
— % on capital
Redbourne — annual income
£0
fees + carry
Deployed loan book£250M
£50M£250M£500M£750M£1bn
Product mix — bridging vs term60% bridge · 40% term
all termall bridge
%
A fund parking this capital would typically pay ~2%. We go in at 0.5%.

Product assumptions

Illustrative — edit to match Castle Trust's actual pricing and cost of funds.

Bridging (day-one)

80% net day-1, ≤70% GDV · PD / conversion schemes · experienced developers
%
%
%
mo

Term (exit take-out)

70% of break-up / 90% of block value · exits the conversion · £1–25M
%
%
%
mo

The carry ladder

Split of margin above Castle Trust's hurdle — Redbourne's share grows as the book scales.

Book ≤ £250M
80 / 20
CT keeps 80% of excess margin
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£250M – £750M
70 / 30
CT 70% · Redbourne 30%
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£750M +
60 / 40
CT 60% · Redbourne 40%
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Annual economics at this book size

Annual, £/yrTotalCastle TrustRedbourne
Interest income (borrower)
Castle Trust hurdle (preferred)
Margin above hurdle
Management fee (% of book)
Arrangement fees (on originations)
Total per year
Effective yield on CT capital

How it reads: Castle Trust earns its hurdle on every pound deployed plus its share of the upside — an effective yield above the hurdle with the same secured, first-charge risk. Redbourne earns the arrangement fees and its carry share, and is incentivised to deploy more (the split moves in our favour past £250M and £750M). Arrangement fees annualised on originations = book ÷ average term. Figures illustrative; edit the assumptions above. Cost of funds is assumed inside the hurdle.

3-year forecast — scaling £250M a year

Standing book grows £250M each year to £750M by year 3. Because ~12-month bridging recycles, cumulative lending written ≈ £1.25bn. Uses the assumptions above.

Per yearYear 1Year 2Year 3
Standing loan book
Carry tier (CT / RB)
Castle Trust return
CT effective yield
Redbourne — management fee
Redbourne — arrangement fees
Redbourne — carry
Redbourne total / yr

The plan: £250M → £500M → £750M standing book, ~£1.25bn written cumulatively over three years. Management fee 0.5% of book (vs a typical ~2% fund fee), paid quarterly in advance. You have the platform; we bring the tools, the distribution and a unique product — the target is realistic together.

Deal-flow funnel — leads to hit the plan

How many maturing-loan leads you work each month to deploy each year's target. Drag the two levers.

Average loan size£5M
£3M£7.5M (band avg)£25M
Conversion rate — lead → completed loan10%
2%realistic 10–15%25%
Annual targetDeals / yrLeads / yrLeads / month
Year 1 · £250M
Year 2 · £500M
Year 3 · £750M