JP Morgan buys £100m BTL book from LendInvest

By Daniel Lanyon on Wednesday 22 September 2021

Alternative Lending

LendInvest's CEO says the deal with JP Morgan reflects its intentions at IPO to move more assets off its balance sheet over time.

JP Morgan buys £100m BTL book from LendInvest
Image source: Rod Lockhart/LendInvest.

LendInvest has sold a £100m Buy-to-Let loan portfolio to JP Morgan in a bid to move more loan assets off its balance sheet over time.

The recently IPO'd alternative property lender has struck a number funding partnerships with large banks and asset managers in recent years.

The transaction is in line with LendInvest's strategy of transferring assets under management originated via our Genesys platform into third party accounts and fund structures, and similar transactions may be carried out in future.

With this deal in particular the loan assets will sit within JP Morgan's Separate Account Mandate, increasing its capacity from £625m to £725m.

The portfolio sale, LendInvest says, will generate a net increase of profit before tax for the current financial year of £1.6m.

Rod Lockhart, chief executive of LendInvest, says the sale is an opportunity to deepen its Separate Account with JP Morgan, made possible by strong market conditions and good performance in its Buy-to-Let portfolio over recent months.

"It is representative of our continued momentum in attracting some of the world's most sophisticated investors. Genesys, our proprietary technology platform, and broker-focused model allows LendInvest to efficiently originate property finance loans, providing partners with access to an asset class with attractive risk-adjusted returns."

"This transaction reflects our intentions at IPO to move more assets off our balance sheet over time, seek to take these profitable opportunities when they present themselves, and strengthen our funds management, business model.” 

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