LendInvest has launched a new £175 million long-term development finance funding partnership with AB CarVal and HSBC as it looks to scale its support for SME housebuilders and accelerate the delivery of new homes across the UK.
The new funding vehicle launches with £175m of senior capital committed by HSBC, supported by funds managed by AB CarVal and LendInvest.
It evolves the London-based FinTech’s existing institutional development finance arrangements into a larger and more flexible structure, allowing the business to back a greater number of SME developers and a broader range of residential project types.
The partnership is designed to scale as activity in the residential development market gathers pace.
The company’s development finance platform has already funded more than 700 projects and supported hundreds of jobs, playing a key role in providing fast and flexible finance to SME housebuilders who may struggle to secure funding from traditional lenders.
The new structure significantly increases its capacity to serve this segment, providing a sustainable, long-term capital base to accelerate its next phase of growth.
It is targeted at the smaller end of the market, with typical development loans of between £1m and £5m.
The announcement follows the publication of LendInvest’s FY26 interim results last week, which showed continued momentum across the business.
Lending grew by more than 20%, alongside improved operational leverage and increased profitability.
With the government committed to delivering 1.5m new homes during this Parliament, the business said greater clarity on funding costs and improved visibility on construction input prices are helping unlock projects that were previously constrained by fiscal and market conditions.
“This partnership is an important milestone for our development finance franchise,” said Hugo Davies, chief capital officer and managing director of mortgages at LendInvest.
“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, added: “LendInvest continues 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.”
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