LendInvest Mortgages (LSE: LINV), an alternative platform for property finance, announces the launch of a long-term development finance funding partnership with AB CarVal and HSBC, intended to scale the company’s development finance proposition and enable the delivery of new homes across the nation.
The funding launches with £175 million of senior capital that has reportedly been committed by HSBC, supported by funds that are being managed by AB CarVal and LendInvest.
The deal evolves LendInvest’s institutional development finance funding into a larger, more flexible vehicle “capable of supporting a greater number of SME developers and a broader range of project types.”
Meant to scale as growth in the residential development market kickstarts
LendInvest’s development finance platform has financed over 700 projects, supporting jobs, directly “supporting SME housebuilders who struggle to access fast and flexible institutional-quality finance.”
The funding extends the capacity to support this segment, providing a capital base for the “next phase of growth.”
It is targeted at the smaller end of the market: development loans between £1m and £5m, where traditional lenders often tend to “lack appetite and alternative lenders struggle to scale.”
This announcement comes after the release of LendInvest’s FY26 Interim Results this past week, where the business reported growth in “lending up over 20%, improved operational leverage, and growth in profitability.”
The launch of the funding builds on this , creating a pathway for deal flow across development finance – “critical if the country is to hit the 1.5 million new homes the government promised in this Parliament.”
With a pipeline and a supportive funding environment, including clarity on funding costs and visibility on construction input prices, the business is positioned to support SME housebuilders as they “move forward with projects that had previously been constrained by fiscal and market conditions.”
AB CarVal brings expertise and experience in private credit and asset-based finance, including residential development finance, “enabling the structure to be executed at speed despite market volatility.”
For LendInvest, the partnership represents an institutional endorsement of the platform’s credit “discipline, origination capability, operational infrastructure.”
HSBC’s participation underscores this, with LendInvest and HSBC having collaborated “on development finance for several years.”
The funding operates for LendInvest as a Separate Account.
Hugo Davies, Chief Capital Officer and Managing Director of Mortgages at LendInvest, commented that this partnership is “an important milestone for our development finance franchise.”
Davies added that AB CarVal brings expertise and firepower; HSBC brings the institutional “strength and continuity that has underpinned our success to date.”
They also mentioned that both bring a history of “supporting SME developers.”
Together, this creates a “long-term funding framework designed specifically for the SME developers who deliver the homes the UK urgently needs.”
Victoria Lindsell, Global Head of Structured Finance at HSBC said that LendInvest continue to demonstrate “their ability to originate and manage a strong portfolio of development loans within the UK market.”
Lindsell also noted that HSBC are pleased to “continue their partnership with LendInvest and to support them in the next phase of growth plans alongside AB Carval.”
Robert Sinclair, MD with AB CarVal stated that they are pleased to be partnering with LendInvest and “their development finance team on this funding.”
Together with HSBC, this structure creates “a compelling opportunity to scale and enhance their track-record of investment into segments of the UK housing market where demand continues to outpace supply.”
As reported earlier, LendInvest PLC recently announced its Full Year 2026 Half Year Interim Results.
The lender reports that it has made progress over the past 6 months.
The strategy set out last year is now “embedded into the day-to-day operations, and is delivering.”
A few takeaways:
- £664 million of new lending, up 23% year on year, with Platform Assets Under Management (AUM) up 17% to £3.45 billion.
- A continuing funding base that continues to strengthen, with Funds
- Under Management (FUM) up 14% to £5.3 billion, and 75% of platform AUM now backed by third-party capital.
- Profitability continues to improve:Net Operating Income up 29% to £21.5 million
- Adjusted EBITDA of £3.7 million
- £1.2 million profit before tax, the firm’s second consecutive profitable half
- Real operating leverage with underlying costs down while lending volumes continue to grow
- Retention is now considered a growth engine, particularly in the lender’s Buy-to-Let (BTL) offering, driven by improvements to their broker and product transfer journeys.
- Two major funding transactions post period-end, further strengthening the balance sheet and extending the fintech’s funding runway.
Despite a choppy macro-economic backdrop and brief slowdown around the recent Budget, the “pipelines remain strong.”
The company said that it is entering the second half of the financial year “with good momentum and remains on track with full-year market expectations.”
Rod Lockart, CEO of LendInvest said that as they look ahead, their focus remains “on disciplined execution – scaling lending, protecting margins and compounding profitability.”
Lockhart added that while they experienced “temporary slowdown in property purchase activity ahead of the November Budget, performance for the full year is expected to remain in line with market expectations.”
With a proper model and steady momentum, LendInvest is positioned to capture the “next phase of growth as market conditions improve.”