London / Luxembourg, 21 December 2017
UK Real Estate is Fintex Capital’s second lending strategy
Fintex Capital’s first strategy, German consumer loans, is now approaching €100m of investments
Fintex Capital’s first real estate lending transaction completed today
Fintex Capital is pleased to announce the successful launch of its UK real estate lending strategy, known as Fintex Confluence. Confluence provides secured funding to a variety of established property lenders such as direct lending firms, specialised lending funds, alternative credit platforms and other established originators. Fintex Capital co-operates with carefully selected lending partners for the long term and intends to deploy in excess of £100 million into UK property loans over the next c. 12 months.
The first real estate transaction completed today involves Fintex Capital providing a debt facility to a specialised property firm secured via a first charge on a revolving portfolio of residential properties located throughout England.
As part of Confluence, Fintex Capital has also been working with other prospective lending partners with a view to launching further investments in 2018 backed by residential and commercial UK property.
Throughout 2017, the Fintex Capital team worked closely with a range of institutions – pension funds, insurance companies, asset managers and banks. This work has confirmed that more and more institutions require secure, private credit assets as part of their fixed income portfolios, especially in times where bond market returns are as low as they are today. Confluence was created to address their requirements: capital preservation, low volatility, consistent income and attractive yields in meaningful size.
Alan Margolis, Fintex Capital’s Head of Real Estate Lending, said: “Today’s launch confirms our commitment to UK property lending. Our maiden transaction marks the beginning of our new activity. The purpose of Confluence is to create granular loan portfolios which are complementary in property types, geographic spread, loan terms and returns. We are now gearing up for 2018 to be a transformative year for both Fintex Capital and our lending partners.”
Robert Stafler, CEO and Co-Founder of Fintex, added: “Today’s transaction launches Confluence, our second strategy. Fintex initiated its first strategy, German consumer loans, in 2016 and we have since made investments of close to €100 million. Our business plan envisages Fintex initiating one new lending strategy every year. I am delighted to conclude 2017 having launched Confluence following 11 months of intensive preparation.
Confluence is now ready to create diversified, sizeable and granular portfolios of property loans in a well-managed, hassle-free manner. This makes Confluence a timely, relevant solution for fixed income investors in search for yield. In turn, Fintex delivers attractively priced and flexible capital to our lending partners, supporting them in writing sustainable loans to creditworthy borrowers across the country.”
Robert Stafler / Alan Margolis
10a Chandos Street, London W1G 9DQ
Tel.: +44 20 3008 6870
Notes to Editors
About Fintex Confluence
Confluence was created to provide lending partners with attractively priced capital, a high degree of flexibility and a can-do attitude. This combination makes Confluence unique. Fintex Capital also applies detailed eligibility criteria and creates strong alignments of interest. Confluence is led by the firm’s highly regarded real estate lending team which includes Alan Margolis, Ashley Marks and Robert Stafler. Fintex Confluence intends to become a partner of choice to market-leading lending businesses.
Over the past year, our team performed rigorous analysis of UK real estate lending to devise Confluence, which combines robust credit procedures with best lending practices. It also incorporates a smart approach as to how security is held, how cash flows, how enforcement works and how credit exposures are kept low at all times.
In line with Fintex Capital’s established modus operandi, Confluence is funded by institutional investors to which Fintex Capital issues tailor-made bonds. The Confluence bonds are backed by highly desirable property loan portfolios. Most notably, each investor’s portfolio is bespoke to suit that investor’s appetite.
About Fintex Capital
Fintex Capital transforms the way institutional investors access alternative credit.
Founded by Robert Stafler and Jérôme Anglade in 2015, Fintex Capital is exclusively dedicated to alternative credit. The Fintex Capital’s team has years of experience in this arena and an in-depth understanding of structured credit, securitisations, real estate, SME lending and consumer finance. Fintex Capital was created to originate, structure and manage bespoke fixed income investments for sizeable professional investors with an institutional mindset. Its aim is to deliver capital preservation, consistent income and superior risk-adjusted returns across all its products.
Leveraging its team’s experience in deep capital markets and its innovative approach, Fintex Capital is well placed to continue and create sustainable, low risk, low volatility lending products which offer attractive yields to institutional investors in the prevailing low interest rate environment. Fintex Capital has received several industry awards and recognitions.
How Fintex Capital works
Fintex Capital purchases sizeable portfolios of loans originated by experienced originators as principal. To finance these loan portfolios, our customers – large asset managers, banks, insurance companies or pension funds – purchase tailor-made bonds issued by Fintex Capital. These are backed by a discrete loan portfolio.
Fintex bonds are cost efficient and capital market friendly. They carry an ISIN and are settled through Euroclear and Clearstream thereby eliminating time-consuming processes. Fintex bonds benefit from standardised documentation and reduce transaction costs to a minimum. As a repeat issuer of bonds, the firm’s set-up is tried and tested, allowing for turnkey bond issuance with a remarkably short time to market. Our processes enable meaningful capital to be deployed in a well-managed and hassle-free manner, while keeping cash drag low and ensuring professional risk management processes and controls remain in place at all times.
At the very core of every Fintex Capital proposition lies custom-made technology. The firm’s centralised risk management tools enable our highly specialised team of credit professionals to track the performance of each loan and each portfolio. Leveraging proprietary technology, Fintex Capital provides sophisticated monitoring, reporting, valuations and projections for each portfolio to a top-class standard.
Fintex Capital is highly selective of the originators it onboards and our team works closely with all of them. This way, our institutional customers benefit from direct and privileged access to market-leading platforms and originators.