Key Takeaways
- • Balbec Capital LP, a global alternative investment manager focused on asset-based credit and real estate, has acquired Funding 365 Limited, a UK specialist property lender, per a Business Wire press release.
- • The acquisition brings Funding 365's origination platform and existing loan portfolio, plus newly originated loans, under Balbec's ownership, giving it a dedicated UK bridging loan origination platform.
- • Funding 365, founded in 2013, has originated more than 1,700 short-term, first-charge bridging loans to UK individuals and SMEs.
- • Balbec says owning an origination and servicing platform is essential to access the UK specialist lending market at scale, with greater control over underwriting and asset selection.
- • Financial terms of the transaction were not disclosed.
Summary
Balbec Capital LP ("Balbec"), a New York and London-based global alternative investment manager specialising in asset-based credit and real estate strategies, has announced the acquisition of Funding 365 Limited ("Funding 365"), a UK-based specialist property lender. According to the Business Wire release, the transaction covers the Funding 365 origination platform, its existing loan portfolio and newly originated loans. Financial terms were not disclosed.
Founded in 2013, Funding 365 is a recognised participant in the UK bridging finance market. It provides short-term, first-charge bridging loans to UK individuals and small and medium-sized enterprises, markets itself as "Fast Property Finance" with same-day credit terms, and has originated more than 1,700 loans since inception. Its product range also includes development and specialist buy-to-let loans secured against residential and commercial property in England, Wales and Northern Ireland.
Funding 365's Managing Director and co-founder Michael Strange and Director Paul Weitzkorn will remain with the business and continue to lead day-to-day operations. Ryan Singer, Partner and Head of Residential Credit at Balbec, described the deal as an opportunity to re-enter the UK bridging market, citing an experienced management team with an excellent credit track record. He said owning an origination and servicing platform is essential to access the UK specialist lending market at scale and gives Balbec greater control over underwriting standards and asset selection.
The acquisition supports Balbec's strategy of building durable, recurring investment pipelines through stronger origination capabilities in attractive UK credit markets. The release states that bridging finance offers strong risk-adjusted returns, underpinned by low loan-to-value underwriting, and that Balbec intends to deploy capital through Funding 365 across its diverse global investment funds. Strange said the Balbec partnership would support new product development, origination growth and service to broker partners and borrowers.
Interpath Ltd acted as sole financial advisor to Funding 365, with TLT LLP as legal and tax advisor. Pinsent Masons LLP was legal advisor to Balbec, and BDO LLP provided financial due diligence and tax advice to Balbec. Balbec, founded in 2010 and SEC-registered, invests directly in residential and commercial mortgage loans, mortgage servicing rights and select consumer and alternative credit assets.
Founded in 2013, Funding 365 is a recognised participant in the UK bridging finance market. It provides short-term, first-charge bridging loans to UK individuals and small and medium-sized enterprises, markets itself as "Fast Property Finance" with same-day credit terms, and has originated more than 1,700 loans since inception. Its product range also includes development and specialist buy-to-let loans secured against residential and commercial property in England, Wales and Northern Ireland.
Funding 365's Managing Director and co-founder Michael Strange and Director Paul Weitzkorn will remain with the business and continue to lead day-to-day operations. Ryan Singer, Partner and Head of Residential Credit at Balbec, described the deal as an opportunity to re-enter the UK bridging market, citing an experienced management team with an excellent credit track record. He said owning an origination and servicing platform is essential to access the UK specialist lending market at scale and gives Balbec greater control over underwriting standards and asset selection.
The acquisition supports Balbec's strategy of building durable, recurring investment pipelines through stronger origination capabilities in attractive UK credit markets. The release states that bridging finance offers strong risk-adjusted returns, underpinned by low loan-to-value underwriting, and that Balbec intends to deploy capital through Funding 365 across its diverse global investment funds. Strange said the Balbec partnership would support new product development, origination growth and service to broker partners and borrowers.
Interpath Ltd acted as sole financial advisor to Funding 365, with TLT LLP as legal and tax advisor. Pinsent Masons LLP was legal advisor to Balbec, and BDO LLP provided financial due diligence and tax advice to Balbec. Balbec, founded in 2010 and SEC-registered, invests directly in residential and commercial mortgage loans, mortgage servicing rights and select consumer and alternative credit assets.
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