The partnership will “scale” LendInvest’s development finance proposition and “accelerate the deliver[y] of much-needed new homes across the country”.
The funding consists of senior capital committed by HSBC and is backed by funds managed by AB CarVal and LendInvest.
LendInvest said the funding partnership evolves its existing institutional development finance funding into a “larger, more flexible vehicle capable of supporting a greater number of SME developers and a broader range of project types”.
The firm said it is targeting the smaller end of the market, with development loans typically between £1m and £5m – where traditional lenders can lack appetite and alternative lenders can struggle to grow.
Hugo Davies, chief capital officer and managing director of mortgages at LendInvest, said: “This partnership is an important milestone for our development finance franchise.
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“AB CarVal brings deep expertise and significant firepower; HSBC brings the institutional strength and continuity that has underpinned our success to date. Both bring a deep history of supporting SME developers. Together, this creates a sustainable, long-term funding framework designed specifically for the SME developers who deliver the homes the UK urgently needs.”
Victoria Lindsell, global head of structured finance at HSBC, said: “LendInvest continue to demonstrate their ability to originate and manage a strong portfolio of development loans within the UK market.
“HSBC are pleased to continue our partnership with LendInvest and to support them in the next phase of their ambitious growth plans alongside AB Carval.”
Robert Sinclair, managing director of AB CarVal, added: “We are delighted to be partnering with LendInvest and their development finance team on this funding.
“Together with HSBC, this structure creates a compelling opportunity to scale and enhance our existing track record of investment into segments of the UK housing market, where demand continues to outpace supply.”
