Balbec Capital Bets on UK “Fast Property Finance” With Funding 365 Deal

Balbec Capital has acquired Funding 365, a U.K.-based specialist property lender, in a move that expands the investment firm’s footprint in the British residential credit market and gives it direct control over loan origination and servicing.

Financial terms of the transaction were not disclosed.

The acquisition includes Funding 365’s origination platform, existing loan portfolio and future loan production. Founded in 2013, Funding 365 specializes in short-term, first-charge bridging loans to individuals and small and medium-sized enterprises across the U.K.

The lender, which markets itself as “Fast Property Finance,” offers same-day credit decisions and expedited loan execution. Since its founding, Funding 365 has originated more than 1,700 loans.

Balbec said the acquisition will strengthen its ability to source and manage assets directly in the specialist lending market, a segment that has grown as traditional banks have retrenched from certain forms of property finance.

“Owning an origination and servicing platform is essential to effectively access the U.K. specialist lending market at scale and provides us with greater control over underwriting standards and asset selection and management,” said Ryan Singer, partner and head of residential credit at Balbec.

Funding 365’s leadership team, including Managing Director and co-founder Michael Strange and Director Paul Weitzkorn, will remain with the business and continue overseeing day-to-day operations.

Interpath served as sole financial adviser to Funding 365, while TLT acted as legal and tax adviser. Pinsent Masons advised Balbec on legal matters, and BDO provided financial due diligence and tax advisory services.