Faes & Co. has received funding from OakNorth to finance US real estate bridge loans.
Faes & Co. was founded by Christian Faes who founded LendInvest, a Fintech originating development loans in the UK. LendInvest is now traded on the London Stock Exchange.
OakNorth is a UK-based digital bank targeting businesses with $1m-$100m in a sector frequently underserved by traditional banks. OakNorth began operating in the US in 2023, reportedly lending over $700 million.
The bank has received authorization from the Federal Reserve and the New York State Department of Financial Services for a Representative Office in New York.
The Faes & Co Income Fund is a private credit fund for accredited investors that invests in loans originated by the platform. Faes & Co. also operates F2 Finance, which provides real estate bridge finance to property entrepreneurs. F2 Finance is currently lending in 13 states across the US.
The funding from OakNorth is said to allow the firm to expand its lending in the sector.
Faes said there is a housing crisis in the US with over half homes being more than 40 years old, and many in need of rehabilitation and repair.
“This is against the backdrop of not enough new houses being built over a number of decades. Bridging finance is a key tool for the entrepreneurs that are actively working to improve the nation’s housing stock, and the growth outlook for the sector, from an investment perspective, is very positive. Real estate bridging finance is a domain that we know extremely well, and I have personally been involved in the sector for almost two decades. We are excited to be building a relationship with OakNorth as they too have deep domain expertise with real estate lending and are a group that is entrepreneurial and aligned to our values as a firm.”
Dylan Jagjivan, Associate Director of Debt Finance at OakNorth, reflected on the “highly experienced team” at Faes & Co.
“We are delighted to be able to support such an entrepreneurial and ambitious business and look forward to supporting them on more growth projects in the future.”