Lendinvest launches new Luxembourg fund

By Daniel Lanyon on Wednesday 7 November 2018

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The firm also recently saw the Luxembourg Future Fund (LFF), advised by the European Investment Fund (EIF), make an equity investment in its last fundraise as the firm expands its presence in the country.

Property finance marketplace LendInvest, which has lent more than £1.5bn since its launch in 2013, has launched a new portfolio aimed at institutional investors.

The LendInvest Real Estate Opportunity Fund, a regulated SICAV SIF, expands the firm’s presence in Luxembourg. It will offer exposure to  a diverse pool of real estate-backed loans originated directly by LendInvest and aim to provide sustainable income yield, with low volatility and low correlation to mainstream asset classes.

More than 60 per cent of investors are non-UK based and is largely made up of pension funds, banks, family offices and private clients. Apart from the UK, investors hail from mainland Europe, the Middle East and Asia.

The Fund launch is a further step forward in LendInvest’s expanding presence in Luxembourg. LendInvest announced earlier this month that the Luxembourg Future Fund (LFF), advised by the European Investment Fund (EIF), participated in its Series C fundraise

Back in June, LendInvest also became a member of the Luxembourg House of Financial Technology (LHoFT) and is increasing its head count in the country.

Investors in the new fund migrated from the Montello Real Estate Opportunity fund, a vehicle which invested in LendInvest loans and was advised by LendInvest Capital Advisors. The firm says this portfolio returned 41.88 per cent from inception in February 2014 to June 2018.

Carl Gianotta, Director of Funds Distribution at LendInvest says the predecessor fund’s track record helped the firm achieve repeat commitments from previous investors, together with new investment.

”We believe that real estate debt should form part of every institutional investor’s portfolio and are pleased to see investors increasingly rotating from real estate to real estate debt in order to diversify and position their portfolios more conservatively,” he said.

Alter Domus Management Company, based in Luxembourg, is the Alternative Investment Fund Manager (AIFM) for the Fund under the Alternative Investment Fund Management Directive with RBC Investor Services Luxembourg acting as depositary and central administrator.

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