Goldman Gives $120 Million Credit Line to Spanish Lending Firm

(Bloomberg) -- A property-focused lending firm set up by two former Citadel traders has received a 100 million-euro ($120 million) credit facility from Goldman Sachs Group Inc.

Stronghold Asset Management will use the funds to support growth and provide direct loans for residential developments, the Madrid-based company said in a statement posted on its LinkedIn page Tuesday.

“This funding commitment from Goldman Sachs is an important step forward in the execution of our ambitious business plan,” said Matt Calner, Stronghold’s co-founder.

A representative for Goldman Sachs confirmed the financing and said the funding came through the New York-based bank’s asset-management division, a key focus of Chief Executive Officer David Solomon as he hopes to rake in more client assets to generate a steady stream of fee income.

Calner set up Stronghold with Niall O’Keeffe, offering loans secured against real estate with a focus on the Spain’s property market. The pair both worked at Goldman before joining Ken Griffin’s hedge-fund Citadel, according to the firm’s website. Stronghold has completed loans worth more than 100 million euros since 2015, according to the news release.

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