LendInvest bags £500m in funding from JP Morgan

By Aisling Finn on Thursday 28 January 2021

Alternative Lending

LendInvest will use the money to fund its future mortgage originations. 

LendInvest bags £500m in funding from JP Morgan
Image source: Christian Faes/LendInvest

Property financing and investment platform LendInvest has secured a £500m investment from JP Morgan.

The fresh cash will be used for LendInvest’s future mortgage originations and comes after LendInvest sold a £125m mortgage portfolio to JP Morgan in September of last year.

Christian Faes, executive chairman, founder and former CEO of LendInvest, told AltFi: “To be able to pull something like this off in this era, with Covid-19, it is a big stamp of credibility on the business.”

“The business is performing exceptionally well and so we’re really excited about the future and this is a good symbol of the support we’ve got from really credible institutions in the market. I mean you can’t get much of a bigger name than JP Morgan!”

Although the Covid-19 pandemic certainly threw a spanner in the works, LendInvest has continued to lend at record rates, dishing out more than £3.5bn to date.

Eric Wragge, managing director in securitised products at JP Morgan, added: “There’s a huge amount of innovation going on in the UK fintech space, which is taking place both in spite of, and in response to, the broader context of the Covid-19 pandemic.”

LendInvest is an exciting business with ambitious plans for the future, and our Securitised Products team has been pleased to work with them to provide capacity for over half a billion pounds of new mortgage lending.”

Despite Covid-19-related economic crisis, LendInvest has also displayed continued growth.

Between April and September 2020, the fintech’s loan book grew by over a quarter (27 per cent) up to nearly £1.4bn lent and its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached £6.2m for the half-year.

However, after five years of ever-increasing revenue and profits, the lender saw its operating profit fall last year to £0.6m (down from £3.3m in FY2019) due to its cancelled IPO.

As well as injecting fresh capital into fintechs like LendInvest, JP Morgan will also be dipping its toes in the fintech waters later on this year.

The American banking giant confirmed yesterday that it will launch its hotly-anticipated mobile-first bank Chase in the UK within the next year and has already put down solid roots in London and Edinburgh, hiring 400 staff across the two locations. 

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