US alternative investment manager takes over specialist property lender, retaining existing management setup
Global alternative investment manager Balbec Capital has acquired Funding 365, a UK-based specialist property lender, in a deal that includes the company's origination platform, existing loan portfolio, and newly originated loans.
Founded in 2013, Funding 365 operates in the UK bridging finance market, providing short-term, first-charge bridging loans to individuals and small and medium-sized enterprises. The lender has originated more than 1,700 loans since launch.
The acquisition is expected to expand Funding 365's product range, including first-charge bridging, development, and specialist buy-to-let loans. Managing director and co-founder Michael Strange and director Paul Weitzkorn will remain in post and continue to lead day-to-day operations under Balbec's ownership.
"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," said Ryan Singer (pictured right), partner and head of residential credit at Balbec.
"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, a New York-based firm focused on asset-based credit and real estate strategies, said the deal aligns with its strategy of building recurring investment pipelines in UK credit markets. The company intends to deploy capital through Funding 365 across its global investment funds.
"Joining forces with Balbec marks an exciting new chapter for Funding 365," Strange (pictured right) said. "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 advising on legal and tax matters. Pinsent Masons provided legal advice to Balbec, while BDO handled financial due diligence and tax advisory. Financial terms were not disclosed.
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