LendInvest secure £40m

LendInvest, a UK marketplace lending platform focused on short-term property financing has just announced a partnership with Australian investment bank Macquarie for £40m.

How the money will be lent:

The £40m from Macquarie adds to the funds committed by other institutional bodies and will be put towards property financing. The Macquarie injection of funds will be attributed to a new warehouse product line, ensuring LendInvest take the lead in being the most diversified mortgage lending platform in the UK.

What do LendInvest do?

LendInvest match retail investors and institutions with property developers, typically, looking for short term (bridging) mortgage finance so they can develop a property and sell out in a six-month period (approximately).

Peer-to-peer lending UK property/mortgage lenders

Last year LendInvest lent £300m across their platform, asserting themselves as the largest property focused financier in peer-to-peer lending UK. It has lent over £600m since its formation in 2013.

Other property based lenders include Landbay who focus on residential mortgages, Assetz Capital and Wellesley & Co who focus on property developments and also Saving Stream and Proplend who allow investors to manually select property loans.

LendInvest institutional backing

The marketplace lender has the backing of four , including a challenger, however they are reluctant to name their backers. LendInvest now has £260m of institutional cash to play with, demonstrating the level of funding outside of retail investors being injected into marketplace lending – consider LendInvest had £300m invested across it in 2015, so £260m institutional cash available compounds the notion that ‘whole loan’ funding is transforming the ‘peer to peer’ market into a dichotomy of individual investors and institutions.
Christian Faes, CEO of LendInvest had this to say:

LendInvest is creating the most diverse capital base of any mortgage lender in the market which is a key differentiator for our business. By welcoming another significant institution and funding line to our business, we are putting in place the foundations for a very scalable move into longer duration lending and ultimately the mainstream UK mortgage market.

published by Jordan Stodart from Orca Money at https://www.linkedin.com/pulse/lendinvest-secure-40m-from-macquarie-jordan-stodart?trk=hb_ntf_MEGAPHONE_ARTICLE_POST