Balbec Capital has acquired UK specialist property lender Funding 365, marking its return to the UK bridging market and establishing a dedicated loan origination platform for future growth.
The acquisition by Balbec Capital LP includes Funding 365’s origination platform, existing loan portfolio and newly originated loans. Financial terms of the transaction have not been disclosed.
Founded in 2013, Funding 365 specialises in short-term first-charge bridging loans for individuals and SMEs. The lender, which operates under the slogan “Fast Property Finance”, has originated more than 1,700 loans since launch.
The deal is expected to strengthen Funding 365’s ability to offer first-charge bridging, development and specialist buy-to-let finance, supported by Balbec’s capital resources and infrastructure.
Funding 365’s existing management team will remain in place following the acquisition. Managing director and co-founder Michael Strange and director Paul Weitzkorn will continue to lead the business under Balbec’s ownership.
Ryan Singer, partner and head of residential credit at Balbec, says: “This acquisition represents a compelling opportunity to re-enter the UK bridging market alongside a well-established platform and an experienced management team with an excellent credit track record.
“Owning an origination and servicing platform is essential to effectively access the UK specialist lending market at scale, and provides us with greater control over underwriting standards and asset selection and management.
“We are thrilled to expand our European real estate capabilities and to support Michael, Paul, and the entire Funding 365 team as they embark on their next phase of growth.”
Balbec said the acquisition supports its strategy of expanding origination capabilities in UK credit markets while creating recurring investment opportunities for its global funds.
The investment manager believes the UK bridging finance sector offers attractive risk-adjusted returns, supported by typically low loan-to-value lending structures.
Michael Strange (pictured) says: “Joining forces with Balbec marks an exciting new chapter for Funding 365.
“The Balbec team’s deep credit expertise, institutional infrastructure and financing relationships, and technological capabilities will enable us to develop new products, grow our origination volumes, and serve our broker partners and borrowers even more effectively.
“We look forward to building on our track record together with a partner that shares our commitment to disciplined underwriting, product excellence, and exceptional service.”
Interpath acted as sole financial adviser to Funding 365, with TLT providing legal and tax advice. Pinsent Masons acted as legal adviser to Balbec, while BDO provided financial due diligence and tax advisory services.
