OakNorth has announced that GIC, the Singaporean sovereign wealth fund, will invest £90 million for a close to 10 per cent stake in the digital-only UK bank.

GIC, which has more than $100 billion of assets under management in more than 40 countries worldwide, will assist OakNorth’s expansion in the US, European and Asian markets.

The news follows a recent investment round that saw OakNorth secure £154 million in funding from Coltrane, Toscafund and The Clermont Group.

The investment has enabled OakNorth to launch its FinTech platform, Acorn Machine. The bank, which lends up to £25 million to UK businesses, has grown its loan book to over £900 million since its launch in September 2015.

Rishi Khosla, CEO and co-founder of OakNorth, commented: “We are extremely excited to have another strong investor, especially one with such a global perspective and sizeable portfolio as GIC. Given the recent £154 million raise, there wasn’t an immediate need to take in additional capital.

“However, when we became aware that GIC was interested in investing, there was a collective view that it would be hugely beneficial to the company if they did, so Indiabulls agreed to sell just under 10 per cent of their stake.

“The transaction is due to close in mid-November and GIC will assist in Acorn’s global expansion, ensuring that banks and lending institutions around the world are able to originate, underwrite, monitor, and book bespoke SME loans faster, more efficiently and with more rigour.”

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