The transaction encompasses the acquisition of the Funding 365 origination platform and its existing loan portfolio, along with newly originated loans.

The acquisition will allow Funding 365 to enhance its offering of first-charge bridging, development and specialist BTL loans.

The lender’s management team, including managing director and co-founder Michael Strange and director Paul Weitzkorn, will remain with the business and continue to lead day-to-day operations under Balbec’s ownership.

“This acquisition represents a compelling opportunity to re-enter the UK bridging market alongside a well-established platform and an experienced management team with an excellent credit track record,” said Ryan Singer, partner and head of residential credit at Balbec.

“We are thrilled to expand our European real estate capabilities and to support Michael, Paul and the entire Funding 365 team as they embark on their next phase of growth.”

Balbec intends to deploy capital through Funding 365 for its diverse global investment funds.

“Joining forces with Balbec marks an exciting new chapter for Funding 365,” said Michael.

“The Balbec team’s deep credit expertise, institutional infrastructure and financing relationships and technological capabilities will enable us to develop new products, grow our origination volumes and serve our broker partners and borrowers even more effectively.

“We look forward to building on our track record together with a partner that shares our commitment to disciplined underwriting, product excellence, and exceptional service.”

Interpath Ltd acted as sole financial advisor to Funding 365, alongside TLT LLP as legal and tax advisor, while Pinsent Masons LLP acted as legal advisor and BDO LLP acted as financial due diligence and tax advisors to Balbec.

Financial terms of the transaction are not being disclosed.