Montello has traditionally funded its transactions through High Net Worth investors, and a family office. These investors are attracted by the deal-flow origination and significant risk mitigation processes implemented by Montello and the superior returns currently available in the bridging finance space.
Earlier this year Montello launched its first fund, the Montello Income Fund (the Fund). The Fund focuses specifically on real estate bridging finance, with a stated focus on the London residential market.
The Fund provides investors with a return of 8.5% pa, and it secures all of its loans by taking first charge security over each property that it lends against.
Christian Faes, Managing Director at Montello, explains:
It has obviously been a very difficult period to be raising money, but the investment opportunity presented by bridging finance seeks to capitalise on the current situation in the marketplace. Furthermore, with the security that we take on our transactions and the asset class that we focus on, the investment proposition provides a superior risk adjusted return.
Ian Sutherland, Managing Director at Montello, explains:
"As our fundraising efforts have gained significant momentum, so has the deal-flow that we are seeing. Each month we see about 100M of enquiries, and this has remained consistent throughout the summer. Importantly, the quality of our deal-flow has been consistently improving.
