Blend Network secures £120m in committed capital

Blend was established in 2018 and has been doing well so far, doubling its lending volumes annually since 2019. It deems the investment “a clear recognition of an urgent need for liquidity among mid-sized housebuilders across the UK.”

It has since invested in digitising its lending process for institutional investors and family offices, which now make up more than 90 per cent of the company’s funding base.

The money will help scale Blend’s loan book up, following the company’s recent “Origination-as-a-Service” initiative, which includes full security, transparency, and an enhanced due diligence process carried out on all loans. It also offers a six-month free extension on loans.

Long term investors include Publicis Groupe chairman Maurice Levy, OakNorth Bank chairman and former Barclays vice chairman Cyrus Ardalan, former Glencore executive Nico Paraskevas, and Jean-Philippe Blochet, co-founder of Brevan Howard.

Yann Murciano, CEO of Blend Network, said: “Obtaining a £120m committed funding line from such a respected group of family offices is a landmark moment for us and illustrates how much progress we have made as a business in a relatively short time, and how our funding is now much more focused on institutional investors.

“This fresh funding line will allow us to boost our origination capability significantly and widen the breadth of services that we offer brokers. It allows us to support mid-sized residential property developers across the UK with their lending capacity, which will in turn make a greater contribution to solving the country’s housing crisis.”

Jonathan Cohen, partner at Ashurst LLP, added: “We really enjoyed supporting the Blend team in securing this committed capital, and we look forward to working alongside them in the next phase of their growth.”