LendInvest Capital’s fund hits £100m

LENDINVEST Capital, the funds management arm of online mortgage lender LendInvest, has announced that its flagship private debt fund is now managing over £100m.

The Real Estate Opportunity Fund, which invests in the UK property market, has more than doubled in size over the 12 months to 30 April 2017, shrugging off uncertainty following the Brexit vote.

The fund also had a record quarter between January and March, receiving £30m of new investment.

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“In such a consistently low-yield interest rate environment, the hunt for income has never been so strong,” said Rod Lockhart, LendInvest Capital’s managing director.

“We can expect to see private debt becoming an increasingly mainstream component of investors’ portfolios.

“Real estate private debt funds, in particular, are well-placed to prosper; despite the hurdles created by the Brexit referendum and the upcoming general election, UK real estate is proving fundamentally resilient. For investors, an exposure to real estate debt provides a strong income return combined with the security provided from the underlying asset.”

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The Luxembourg-domiciled fund attracts a wide range of investors including asset managers, banks, pension funds, family offices and high-net-worth individuals from Europe, the Middle East and Asia.

The LendInvest group manages and advises on more than £430m of assets and has lent £1bn since launching in 2008.

LendInvest, which is a member of the Peer-to-Peer Finance Association, reported a 133 per cent rise in revenue to £32m and profits of £3.4m in its last full-year results. The results contrast to the performance of its peers, many of whom are loss-making due to heavy investment into the business.

“We may be growing fast, but we’re doing so sensibly,” said co-founder and chief executive Christian Faes at the time.