We’re now living in an era where economic dynamism is causing the financial landscape to evolve at an unprecedented rate. Driven by tech advancements, growing globalisation and agile business practices, arguably only those that are capable of rapid innovation, advanced strategic planning and customer-centricity will not just survive but thrive. Matt Watson, CEO of Tenn, believes that these shifts will force the lending industry to undergo one of the largest consolidations in modern times. The result will fundamentally change the way in which many investors and businesses manage their finances. Matt explains:
“We are at the end of the era of cheap money where interest rates are continually below 1%. This is going to kickstart a phase in the economic cycle where we see a significant increase in consolidation in the lending market. In future, there will be a smaller number of players in the market. The most successful operators will be those that are driven by superior operational efficiency, risk management, and the ability to conduct and manage business in a very different way to that which we’ve seen in the past.”
Innovation
Tenn was created during the early days of the pandemic, focusing on the needs of high-net-worth individuals, companies, trusts and foundations. The aim was to redefine the parameters of short-term lending within high-value international real estate. Helping first class borrowers unlock capital that would otherwise be out of reach.. He explains the thinking:
“If you’re doing something completely new, the chances are it’s either fundamentally wrong or really, really hard. When we first started out, we looked at bridging lending and saw a big gap in the international market. We couldn’t quite figure out why no-one had done it before and thought we’d have a look at providing a solution. Very quickly, it became obvious that there was one key challenge which was probably also the exact same reason why the opportunity existed for us.”
The opportunity existed because most funders limited their thinking to just one country and one country alone. However, we identified there was a growing need to be able to look after an influential group of individuals that were investing in real-estate with an international outlook. Historically, bringing lenders and buyers together in one place to meet these needs has been a huge challenge.
Solving major problems
Tenn set about building a company capable of servicing those looking for short-term access to a lending facility for international real-estate lending. The problem was finding someone who would provide funding for the venture. During the pandemic, Matt completed more than 200 Zoom calls to communicate the vision and why the proposition was a compelling opportunity.
When they eventually found someone with the confidence to support the idea, Tenn was truly up and running.
“Today we have delivered lending solutions across 18 countries and have many more in our sights. We’ve developed significant expertise regarding the regulatory systems of different locations to understand how best to deliver within the appropriate legal frameworks. We’ve also built key relationships with some fantastic teams of lawyers and valuers in those different jurisdictions,” Matt explained.
“We’ve created a genuinely unique lending model and standardised an operational process that allows us to lend with efficiency and handle exceptionally complex problems. We have also built a world class team with decades of experience in financial services, covering all the essential disciplines..”
A unique customer proposition
At the heart of Tenn’s ethos lies a commitment to offering lending facilities to a niche market of private clients, companies, foundations and trusts. What sets the company apart though is not merely its focus on prime and super prime real estate but its growing global operational reach.
The approach is bolstered by a profound understanding of cross-border structuring, allowing Tenn to navigate the complex legal landscapes of multiple countries. The ability to assess and secure loans against properties worldwide has opened-up major opportunities for those with an international portfolio.
Operational excellence
As the company continues to expand, one of the main areas of focus is building a framework designed to capture and institutionalise the intellectual property accrued over time. This framework ensures that the company’s experience in dealing with complex, cross-border transactions is not only retained but also disseminated throughout the entire Tenn organisation.
For example, the company has created a proprietary operating manual, which is a comprehensive guide to executing deals across multiple jurisdictions. Matt believes this is the strategic blueprint for providing a service to clients that can be repeated and scaled in the future:
“Our aim is to continually invest and improve how we help this segment of the market, coupled with a commitment to excellence and growth. We have built a cloud-based, scalable infrastructure that will enable us to increase the amounts we can lend and crucially expand into new countries. However, its important to note we’ll still be able to ensure uniformity in governance and process regardless of the transaction’s complexity. I am also particularly proud of our credit work. We are laser focused on the credit process, which sits at the centre of everything we do.
Unrivalled opportunity
‘We have unrivalled knowledge of the UK, offshore and international markets, together with the credit, structuring and advisory sectors. This combined expertise ensures Tenn is best positioned to help first class borrowers unlock capital and pursue opportunities that I believe would otherwise be out of reach ”
As the industry braces itself for a future of consolidation and change, its fair to say Tenn has initiated a journey to offer lending innovation in an area of the market that many had previously been fearful and unable to enter. Truly breaking the mould for international bridging lending in the process.
If you want to find out more about our unique approach to international bridging finance please contact us.