Balbec Capital announced that it has acquired Funding 365, a UK-based specialist property lender.
The transaction includes the acquisition of the Funding 365 origination platform, its existing loan portfolio, and newly originated loans. Financial terms were not disclosed.
Founded in 2013, Funding 365 focuses on short-term, first-charge bridging loans for UK individuals and small and mid-sized businesses.
The company operates in the UK bridging finance market and has originated more than 1,700 loans since its inception.
Balbec said the acquisition establishes a dedicated UK bridging loan origination platform and expands its European real estate capabilities.
Funding 365’s management team will remain with the business. Managing Director and Co-Founder Michael Strange and Director Paul Weitzkorn will continue leading day-to-day operations under Balbec’s ownership.
The acquisition is expected to help Funding 365 expand its offering of first-charge bridging, development, and specialist buy-to-let loans.
Balbec said the deal aligns with its strategy of building durable and recurring investment pipelines by strengthening origination capabilities in attractive UK credit markets.
The firm plans to deploy capital through Funding 365 for its global investment funds.
Support: Interpath acted as the sole financial advisor to Funding 365, with TLT serving as legal and tax advisor. Pinsent Masons acted as legal advisor to Balbec, and BDO provided financial due diligence and tax advisory services.
KEY QUOTES:
“This acquisition represents a compelling opportunity to re-enter the UK bridging market alongside a well-established platform and an experienced management team with an excellent credit track record. Owning an origination and servicing platform is essential to effectively access the UK specialist lending market at scale, and provides us with greater control over underwriting standards and asset selection and management. We are thrilled to expand our European real estate capabilities and to support Michael, Paul, and the entire Funding 365 team as they embark on their next phase of growth.”
Ryan Singer, Partner and Head of Residential Credit at Balbec
“Joining forces with Balbec marks an exciting new chapter for Funding 365. The Balbec team’s deep credit expertise, institutional infrastructure and financing relationships, and technological capabilities will enable us to develop new products, grow our origination volumes, and serve our broker partners and borrowers even more effectively. We look forward to building on our track record together with a partner that shares our commitment to disciplined underwriting, product excellence, and exceptional service.”
Michael Strange, Managing Director and Co-Founder of Funding 365
