The investor exercised warrants following a strong performance from the lender
MT Finance Group has announced that an American investment company has become a minority shareholder in the business.
The undisclosed American company, which focuses on fixed-income investments, exercised warrants obtained on MT Finance as early as 2017. The decision to exercise the warrants followed MT Finance’s strong performance throughout the pandemic. This included the launch of a regulated bridging product in 2020 – which the organisation claimed would come back within hours of receiving an application and supporting documents with approval or indicative terms - and a new buy-to-let product last July.
Just last year, the specialist property finance lender became the first to launch a £250 credit scheme for borrowers who achieved an EPC rating of ‘A’ or ‘B’ on their property as part of an effort to encourage borrowers to purchase energy-efficient properties or upgrade windows and heat sources, reducing running costs.
“We look forward to welcoming this outstanding institution as a shareholder,” said director and co-founder of MT Finance Joshua Elash. “The cementing of this relationship will serve MT Finance well in the coming years as we continue to achieve our objectives of being an ESG-focused, multi-solution, financial institution.”
Nick Parkhouse, partner for UK financial services and corporate finance at Ernst & Young (EY), advised on the transaction which created the warrants.
“This is another validation of the growth strategy MT Finance put in place in 2017 to become the leading property lender in the UK,” Parkhouse said. “I am confident there will be further and continued exciting news coming from the company in the not-too-distant future.”
MT Finance was established in 2008 by co-founders Elash and Tomer Aboody.