Faes & Co., an investment firm led by LendInvest plc founder Christian Faes, has launched its maiden private credit fund focused on the U.S. real estate bridging finance market.
The Faes & Co Income Fund will invest in loans originated by Faes & Co.’s own group company, F2 Finance, which was launched earlier this year. The focus will be on funding a diversified portfolio of granular short-term mortgages secured by first mortgage against residential property – lending to “property entrepreneurs” that are active in the “fix & flip” market.
“The U.S. real estate bridging finance market has undergone a recent period of disruption, where traditional institutional funders have significantly slowed their appetite for a variety of reasons – from the securitization market being ‘less open’, to regional banks that have had a flight of deposits post the SVB crisis,” said Christian Faes. “The asset class now presents a very interesting and unique opportunity for investors. It is also a very large and liquid market for building a diversified pool of asset-backed loans that provide a superior risk-adjusted return for investors.”
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