ASK Partners is a UK-based structured finance company that operates in the private equity and lending space, and offers bespoke and flexible funding solutions to experienced residential and commercial property developers and asset managers. ASK’s flexible capital base enables funding across all capital structures, ranging from short-term debt finance to joint venture equity transactions. ASK’s flexible approach and experienced management helps in creating tailored funding solutions for our clients in applying a classic value-add investment approach, identifying high-growth sectors and working with our partners to achieve above-average risk-adjusted returns. ASK is able to provide funding from £1 million to in excess of £25 million.
Trematon’s investment in ASK continues to add value to intrinsic net asset value as well as contribute to the group’s profits albeit a smaller profit contribution in the current year of R1.8 million (2019: R13.9 million) due to once-off office set-up
expenses, relocation costs and additional staff costs. These additional costs are in line with the projected growth of the business in being able to cater for its growing investor base of clients. ASK maintained its intrinsic net asset value contribution at 10%, with the depreciation of the Rand to the Pound adding R20.7 million (2019: R3.2 million) to intrinsic net asset value.
By the end of August 2020 ASK had written loans in excess of £325 million (2019: £150 million). A thorough review was performed of the loan book and management is confident that ASK’s borrowers and related security remain robust. The average loan to value of ASK’s loan book is less than 65%, and the business has minimal exposure to retail and no exposure to leisure, hotels or full-scale development.
ASK continues to exceed initial budgets and projections, both in terms of loans written and syndications concluded, and is on track to achieve Trematon’s long-term return objectives.