LendDirect deploys its capital to carefully selected bridging loans originated by its lending affiliate (established 2016).  These loans are backed by UK properties with loan-to-value ratios (LTVs) no greater than 75%. The strategy has a relatively short investment horizon as loans are extended for no longer than 1 year.

Investor capital is deployed across a diversified portfolio of loans to reduce concentration risk. The portfolio is managed in line with a series of risk limits that are designed to attempt to minimise the impact of idiosyncratic risk and ensure that the portfolio’s primary risk is general exposure to a large fall in UK property prices.

The lender’s customised loan offering and proprietary origination model have enabled it historically to achieve premium lending rates that have delivered investors returns in excess of most peers.

LendDirect prioritises transparency, with investors benefitting from access to a proprietary portal that delivers near real-time access to portfolio composition and performance.

The loan strategy is capacity constrained and historically has only been available by referral from existing investors. These professional investors have found that short-term property loans can play a valuable role in a diversified portfolio.