Montello Launches Second Real Estate Debt Fund

Jan 8 2013 | 4:30pm ET

London-based financier Montello Capital Partners has launched its second real estate debt fund. The new vehicle, Montello Development Finance, will focus on lending to London residential property developers.

The fund, which has been seeded largely by existing Montello investors, builds on the four year track record that Montello has established in the short term lending market in the UK. The new fund will also add to the £50 million of funds under management for the firm.

Montello’s first fund, the Montello Income Fund, provides investors with a fixed return of 8.5% pa, and is secured by short term first charge loans against London residential property. The new fund is more tailored to high net worth, sophisticated and family office investors. It provides investors with an increased fixed return of 10% pa, and lends on both a first and second charge basis against small scheme residential property developments in London. The new vehicle requires a two year lockup.

Christian Faes, managing director of Montello, said, “Investing in short term loans secured against residential property in London has understandably proved to be a very popular investment strategy in the current market. However, there are not that many operators that allow investors access to this investment opportunity in the same way that Montello does.”

He added: “We decided to launch the new development finance fund because we had a number of our existing investors that were saying to us that they were keen to go a little higher up the risk curve. We have consistently been able to construct a very conservative portfolio for our existing Montello Income Fund, with an average LTV across the book of around 60% - and that is exclusively lending on a first charge basis.”

“We have listened to our investors, and put together the new fund which will be an exciting addition to our existing investor offerings,” he said.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...