LendInvest eyes mainstream mortgage market and flotation with £30m funding

  • 17/09/2018
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LendInvest eyes mainstream mortgage market and flotation with £30m funding
LendInvest has secured a £30.5m investment which is aimed at boosting its preparation for a stock market listing and a move into the mainstream mortgage market.


The lender is currently active in the bridging, development finance and buy-to-let specialist mortgage markets.

However, a statement announcing the successful fundraising noted that the capital raised “provides the business with significant flexibility as it moves towards the mainstream mortgage market”.

A previous funding round of £17m in March 2016 enabled the business to increase its investment in technology and enter the buy-to-let market.

The business has lent over £1.5bn and financed more than 5,000 properties across the UK.

A LendInvest spokeswoman told Specialist Lending Solutions that expansion into the mainstream market was an overall aim for the lender and that there would be developments in “the next few of months” on the subject.

She added that more details on the progress towards a flotation would be expected in the next year.


Pre-flotation funding

LendInvest CEO and co-founder Christian Faes has also made no secret that he would like to take the business onto the stock market.

The statement confirmed that the Series C debt and equity funding round for approximately £30.5m was positioned by the company as pre-IPO (Initial Public Offering) funding.

Atomico has increased its investment in the business along with new investors which include a fund associated with the technology investment bank GP Bullhound, and Tiger Management which was founded by US hedge fund investor Julian Robertson.

Faes said: “Having recorded a fourth consecutive annual profit, raising capital wasn’t a necessity for LendInvest but by beefing up our balance sheet and bringing on some very experienced additional investors, we are well placed to capitalise on opportunities in the future.

“Using technology LendInvest is building a new kind of financial services business, and an extremely scalable platform, which is changing the way mortgages are funded and work in the UK.

“It’s great to have received further backing from Atomico, who have been great partners in our business, and to bring on our new investors in GP Bullhound and Tiger to help us achieve our ambition.”


Technology investment

Atomico partner Mattias Ljungman said: “Since our initial involvement the business has invested heavily in its proprietary technology, successfully moved into buy-to-let and launched the fintech sector’s first listed retail bond programme.

“We are excited to work with LendInvest as it continues with its high-growth trajectory and look forward to seeing what the future holds for the business.”

GP Bullhound managing partner Manish Madhvani added: “We have followed the impressive growth of LendInvest for a number of years and are delighted to back Christian and his team as they redefine and simplify the mortgage market.”




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