Faes & Co Launches Private Credit Fund, Raising Up to $100M for Real Estate Bridging Finance in the US

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Dec 05, 2023, 08:00 ET

Income Fund taps into the firm's deep domain expertise to capitalize on a market going through a period of disruption

SANTA MONICA, Calif., Dec. 5, 2023 /PRNewswire/ -- Faes & Co, an investment firm led by LendInvest plc founder Christian Faes, has launched its maiden private credit fund focused on the US real estate bridging finance market. The Faes & Co Income Fund intends to make use of the firm's extensive domain knowledge in the short-term mortgage market to provide investors with consistent, superior risk-adjusted returns.

The 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 in the US - lending to "property entrepreneurs" that are active in the "fix & flip" market.

Christian Faes has almost two decades of experience in the real estate bridging finance sector operating in Australia, the UK, Ireland, and now the US; and has been managing investment funds in the sector for the last 14 years. During this time, Christian has helped build a number of the largest private lenders in their respective markets, with LendInvest in the UK, and Onate in Ireland.

In the US, the short-term mortgage market was recently estimated to be as large as $68 billion a year in annual originations. The Faes & Co Income Fund is open-ended and available to accredited investors in the US, with a Cayman Islands feeder fund available for offshore investors. The Fund is also administered by Socium, with CohnReznick appointed as the Fund's auditor.

"The US 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."

About Faes & Co

Faes & Co is an investment firm that actively builds and invests in technology-enabled direct lending businesses that are 'powering the next generation of finance'. Our flagship private credit fund invests in the proprietary asset-backed dealflow originated by our group company, F2 Finance, a specialist real estate bridging finance lender in the United States. The firm's team have been involved with building direct lending businesses in the UK, Ireland, Australia, and the U.S.; these companies have over $5 billion in Funds under Management and employ over 200 people. For information on our group, please visit www.faes.co and follow us on Twitter @faesandco and LinkedIn at www.linkedin.com/company/faesandco

SOURCE Faes & Co.