Raising capital in an unstable market with LendInvest

The market situation for LendInvest

LendInvest set out to raise funds in April 2022, with market sentiment changing dramatically after Putin’s invasion of Ukraine hitting markets from the end of February.

This came at a time when the energy price cap rise was already decided, and when substantial amounts of property regulation were already in the pipeline.

Their securitisation, dubbed Mortimer IV, therefore needed to deploy new data in a new way, to communicate that these risks had been considered, and plans were in place to manage exposure.

Investor demand for climate insight on property assets has never been greater, and yet accessing accurate information across thousands of properties contains real challenges.”

Hugo Davies

Chief Capital Officer, LendInvest

How did Lendlnvest access the right data for their securitisation?

In a market-first, Kamma were able to accurately map the energy ratings and carbon footprint of every property in the securitisation, providing a top level indicator for the performance of the asset pool in the turbulent times ahead.

A detailed report was included in the prospectus, breaking down future scenarios, a projected cost of future compliance requirements, and the steps needed to take to manage this aspect of risk.

The impact of Kamma's environmental data for LendInvest

Following the development of the Mortimer IV data report, LendInvest’s securitisation was oversubscribed in a challenging market, raising an additional £270 million for LendInvest and supporting their next phase of lending.

The reports delivered an operationally efficient view on a complex area, with the number of ESG surveys to complete reducing from 20 to just three, with a number of investors complimenting the thoroughness of the approach.

Kamma’s technology efficiently and effectively resolved this: delivering the portfolio and property insights needed to assure potential investors, supporting a positive response to this securitisation. In an unstable market, investors require more certainty, Kamma’s report delivered this.”