LendInvest founder and former CEO Christian Faes, and Faes and Co., have announced a new private credit fund for real estate bridge loans. The goal is to raise up to $100 million.
LendInvest is a publicly traded Fintech that enables developers/builders to raise money to fund projects in the UK. First launched as an online platform catering to individual investors, today, LendInvest is backed by institutions and recently completed their 5th securitization.
Now, Faes is taking his deep experience in property markets to launch a bridge funding vehicle to supply money to a “diversified portfolio of granular short-term mortgages secured by first mortgage against residential property in the US – lending to “property entrepreneurs” that are active in the “fix & flip” market.”
Faes said this asset class now presents a very interesting and unique opportunity for investors. He says it is a very large and liquid market that can generate superior risk-adjusted returns for investors. He sees opportunity in this market because the “US real estate bridging finance market has undergone a recent period of disruption, where traditional institutional funders have significantly slowed their appetite for a variety of reasons – from the securitization market being ‘less open’, to regional banks that have had a flight of deposits post the SVB [Silicon Valley Bank] crisis.”
The short-term mortgage market is estimated to be about $68 billion a year in originations. The Faes & Co Income Fund is open-ended and available to accredited investors in the US, with a Cayman Islands feeder fund available for offshore investors. The Fund is administered by Socium, with CohnReznick appointed as the Fund’s auditor.
The private credit fund invests in proprietary asset-backed deals originated by the group company, F2 Finance.
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