LendInvest Mortgages (LSE: LINV), a leading alternative platform for property finance, today announces the launch of a new long-term development finance funding partnership with AB CarVal and HSBC, designed to scale the firm’s development finance proposition and accelerate the delivery of much-needed new homes across the country.
The funding launches with £175 million of senior capital committed by HSBC, supported by funds managed by AB CarVal and LendInvest.
The deal evolves LendInvest’s existing institutional development finance funding into a larger, more flexible vehicle capable of supporting a greater number of SME developers and a broader range of project types.
Designed to scale as growth in the residential development market kickstarts
LendInvest’s development finance platform has already financed more than 700 projects, supporting hundreds of jobs, directly supporting SME housebuilders who often struggle to access fast and flexible institutional-quality finance.
The new funding significantly extends the capacity to support this segment, providing a sustainable, long-term capital base for the next phase of growth.
It is targeted at the smaller end of the market: development loans typically between £1m and £5m, where traditional lenders often lack appetite and alternative lenders struggle to scale.
Lending Momentum
This announcement comes after the publication of LendInvest’s FY26 Interim Results last week, where the business reported continued strong growth in lending up over 20%, improved operational leverage, and growth in profitability.
The launch of the funding builds on this momentum, creating a clear pathway for increased deal flow across development finance - critical if the country is to hit the 1.5 million new homes the government promised in this Parliament. With a robust pipeline and an increasingly supportive funding environment, including greater clarity on funding costs and improved visibility on construction input prices, the business is well positioned to support SME housebuilders as they move forward with projects that had previously been constrained by fiscal and market conditions.
AB CarVal brings deep global expertise and decades of experience in private credit and asset-based finance, including residential development finance, enabling the structure to be executed at speed despite market volatility. For LendInvest, the partnership also represents an institutional endorsement of the platform’s credit discipline, origination capability, and operational infrastructure. HSBC’s ongoing participation further underscores this, with LendInvest and HSBC having collaborated on development finance for several years.
The funding operates for LendInvest as a Separate Account.
Hugo Davies, Chief Capital Officer and Managing Director of Mortgages at LendInvest, commented: “This partnership is an important milestone for our development finance franchise.
AB CarVal brings deep expertise and significant firepower; HSBC brings the institutional strength and continuity that has underpinned our success to date. Both bring a deep history of supporting SME developers. Together, this creates a sustainable, long-term funding framework designed specifically for the SME developers who deliver the homes the UK urgently needs.”
Victoria Lindsell, Global Head of Structured Finance at HSBC said: “LendInvest continue to demonstrate their ability to originate and manage a strong portfolio of development loans within the UK market.
HSBC are pleased to continue our partnership with LendInvest and to support them in the next phase of their ambitious growth plans alongside AB Carval.”
Robert Sinclair, Managing Director with AB CarVal added: “We are delighted to be partnering with LendInvest and their development finance team on this funding.
Together with HSBC, this structure creates a compelling opportunity to scale and enhance our existing track-record of investment into segments of the UK housing market where demand continues to outpace supply.”
