27 April, 2016

LendInvest Strikes £40m Macquarie Deal

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

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

LendInvest Overview

LendInvest matches retail investors and institutions with property developers typically seeking short-term (bridging) mortgage finance so they can develop property - usually for a quick sell out in a six month timframe.

Peer-to-Peer Mortgage Lenders

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

Other property based lenders include Landbay who focuses 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 asset-backed property loans.

LendInvest Institutional Backing

The marketplace lender has the backing of four banks, including a challenger, however the team are reluctant to name their backers. LendInvest now has £260m of institutional capital, demonstrating the potential levels of funding that sit outside of retail money - LendInvest had £300m invested across it in 2015, so £260m institutional cash increases liquidity, but also supports the argument that "peer-to-peer" in the conventional sense may be becoming blurred as whole loan funding becomes ever present in the market.

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.