Alternative credit investor Fintex is expanding its UK footprint, after completing three new residential property investments in the country.
In an update to clients, Fintex confirmed that it is growing its institutional base, increasing its work with family offices and high-net worth individuals, and growing its UK secured lending strategy under the brands Fintex Confluence and Fintex Specialty Finance.
The three recent property investments were made via Fintex Confluence and all are secured on residential properties. The investment firm said that this included the purchase of a portfolio of performing buy-to-let mortgages “at a material discount to face value”.
It is believed that these investments amounted to approximately £5m in total. Fintex Confluence is targeting approximately nine per cent per annum in gross returns, and “continues to perform significantly ahead of target”.
Read more: European Fintech Association launches
Meanwhile, Fintex Specialty Finance is also entering a period of growth, the company said. It is focusing on “low-risk lending opportunities in the UK within niches of the market that are significantly less populated by lenders than real estate debt”. It is aiming for gross annual returns in excess of 10 per cent.
“We know how difficult it is to generate income in current markets,” said Fintex, in a note to investors.
“Fintex Capital is among the very few investment firms in private credit that have continuously been open for business (and not just pretending!), making prudent investments throughout the Covid-19 crisis.
“The markets we operate in remain dislocated which puts us in a unique position to take advantage of attractive lending opportunities as they arise.”
Fintex added that it has also onboarded an unnamed European bank as a new institutional investor, with the bank committing €25m (£22.55m) into one of Fintex’ institutional lending strategies.
Fintex Capital has investments in the UK, the US and Europe, and currently holds currently holds $150m (£120m) in assets.