Specialist fund manager launches UK real estate strategy

By Ryan Weeks on Friday 22 December 2017

Alternative Lending

Fintex Capital will provide funding to a range of alternative originators in the real estate space.

One of the quieter fund managers within alternative finance has launched a new strategy focused on UK real estate. Fintex Capital yesterday closed the new strategy’s maiden transaction, a debt facility to a specialist property lender.

The new strategy, christened Confluence, will see funding provided to a range of direct lending firms, specialised lending funds, alternative credit platforms and other kinds of originators – all operating within the field of UK real estate. Its intention is to deploy in excess of £100m into UK property loans over the next 12 months. The money will be deployed via small-to-middle sized lenders.

Fintex has been active in the alternative lending space since March 2016, when it launched its debut strategy, focused on German consumer loans originated by marketplace lender Auxmoney. Its approach is to pack loans into listed bond issues which may then be invested in by larger institutions (pension funds, insurance funds, asset managers, etc.), which also receive the added benefit of Fintex’s reporting and monitoring services.

“The purpose of Confluence is to create granular loan portfolios which are complementary in property types, geographic spread, loan terms and returns,” explained Alan Margolis, head of real estate lending at Fintex.

Yesterday’s deal was a debt facility secured on a revolving portfolio of residential properties located throughout England. The identity of the lender was not disclosed.

“Today’s transaction launches Confluence, our second strategy. Fintex initiated its first strategy, German consumer loans, in 2016 and we have since made investments of close to €100 million,” said Robert Stafler, CEO and co-founder of Fintex. “Our business plan envisages Fintex initiating one new lending strategy every year. I am delighted to conclude 2017 having launched Confluence following 11 months of intensive preparation.”

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