LendInvest founder debuts private credit fund
LendInvest founder Christian Faes’ investment firm has launched its maiden private credit fund focusing on US real estate bridging finance.
Faes & Co’s new income fund seeks to raise up to $100m (£79m) and aims to capitalise on the market as it goes through a period of disruption.
The fund will invest in loans originated by Faes & Co’s own group company F2 Finance, which launched earlier this year. It will focus on funding a diversified portfolio of granular short-term mortgages, secured by first mortgage, against residential properties in the US.
LendInvest founder Christian Faes’ investment firm has launched its maiden private credit fund focusing on US real estate bridging finance.
Faes & Co’s new income fund seeks to raise up to $100m (£79m) and aims to capitalise on the market as it goes through a period of disruption.
The fund will invest in loans originated by Faes & Co’s own group company F2 Finance, which launched earlier this year. It will focus on funding a diversified portfolio of granular short-term mortgages, secured by first mortgage, against residential properties in the US.
Lending will be granted to property entrepreneurs who are active in the “fix and flip” market. The fund is open-ended and available to accredited investors in the US, with a Cayman Islands feeder fund available for offshore investors.
Faes has almost two decades of experience in the real estate bridging finance sector operating in Australia, the UK, Ireland and the US. He has managed investment funds in the sector for the past 14 years.
During that time, Faes is credited with helping to build a number of the largest private lenders in their respective markets, with LendInvest in the UK, and Onate in Ireland.
The short-term mortgage market in the US was recently estimated to be as large as $68bn a year in annual originations, according to Faes & Co.
Faes said: “The US real estate bridging finance market has undergone a recent period of disruption, where traditional institutional funders have significantly slowed their appetite for a variety of reasons – from the securitisation market being ‘less open’, to regional banks that have had a flight of deposits post the SVB crisis.
“The asset class now presents a very interesting and unique opportunity for investors. It is also a very large and liquid market for building a diversified pool of asset-backed loans that provide a superior risk-adjusted return for investors.”
The new fund is administered by Socium, with CohnReznick appointed as its auditor.
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