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From Matthias Knab, Opalesque Europe: London-based Montello Private Finance says the firm has developed a model to take advantage of the illiquidity in the banking sector and providing superior risk-adjusted returns in the niche bridging finance market. The Montello model allows investors looking to manage their funds more actively, significant control and transparency. Furthermore, Montello's investments are well suited to investment managers running 'managed accounts' (particularly investment managers of ABL/bridging finance or alternative credit opportunity funds, or fund of fund managers that previously invested in funds following these strategies).
Montello sources and arranges real estate ABL/bridging finance transactions in the UK for investors. The transactions are sourced through an extensive referrer network that it has established throughout the UK. The transactions are generally for between 3 and 13 months, and lend to no more than 70% of the current market value of the relevant security property (as determined by an independent valuer in each instance). Whilst the loans are secured by first charge, Montello will generally also cross-collateralise loans against other security, and obtain personal guarantees and fixed and floating charges from borrowers. Montello says the generated investor returns, on these terms and net of all fees, would be between 15% and 20% per annum.
Montello funds its transactions through alternative funding sources such as private...................... To view our full article Click here
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