White Oak launches £1.5bn private credit strategy for UK SMEs

White Oak UK, an affiliate of White Oak Global Advisors, has announced plans to launch a new senior-secured private credit strategy targeting up to £1.5 billion of capital to support UK SMEs and mid-market businesses investing in growth, manufacturing and infrastructure.

The new strategy is designed to support the UK’s reindustrialisation by providing flexible finance for manufacturing modernisation, industrial capacity, capital equipment, infrastructure projects and supply chain resilience.

It builds on White Oak UK’s established non-bank lending platform, which has originated more than £3 billion of loans since 2018 through a network of direct borrower relationships, bank referrals, adviser partnerships and government-backed lending programmes.

The strategy will focus on businesses operating in sectors including manufacturing, engineering, healthcare, life sciences, aerospace and defence, with lending centred on four key areas: asset acquisition and modernisation, business growth and expansion, operational resilience and working capital, and investment in infrastructure and operational footprint.

White Oak said the strategy will leverage an origination platform that includes more than 20 UK banking relationships, enabling referrals of lending opportunities outside traditional banks’ risk appetite. It will also utilise cross-border financing partnerships between the UK and US, together with broker-dealer and investment banking advisory channels where exclusive origination arrangements are in place.

The firm said its lending model is predominantly based on directly originated, senior-secured, asset-backed loans rather than competitive sponsor-led transactions.

“We believe there’s a real opportunity here for private capital to address the long-term shift away from manufacturing towards services. By leveraging our extensive origination platform and deep experience serving SMEs, we are well-positioned to address a critical need across the UK economy.”

White Oak said the launch comes as UK businesses continue to face a significant funding shortfall. The firm estimates that around 75% of SMEs expect to require external finance in the near term, while the Bank of England has previously estimated the UK’s SME funding gap at £22 billion.

According to the lender, reduced appetite among traditional banks for working capital and asset-based lending has increased demand for alternative private credit solutions.

“White Oak’s broad lending capabilities allow us to structure flexible solutions for businesses underserved by traditional lenders, and this strategy will support companies investing in long-term growth across the UK.”