We launched Tenn Capital on the 4th of May 2021 – the two years have flown by and the world is rather different.
We started the business with a clear focus – to provide short-term finance to high-net-worth individuals secured against their international real estate. We had all the parts except one vital thing.
The Capital!
We intended to offer opportunities to our contacts and “co-fund” on a deal-by-deal basis until we built enough of a portfolio to attract a formal credit line.
We were, however, fortunate enough to catch the eye of a leading institution that understood what we were offering. That, plus the quality of our team and the strength of our origination’s plans, led to them forming a JV with us and we got building the business we are today.
Over the last 2 years, the world has changed immeasurably – property prices were increasing in almost all prime locations and interest rates were at historical lows. Now, international real estate values are under severe pressure and we have base rates still on the assent and reaching 20-year highs in some countries.
We are also starting to see significant tightening in credit conditions internationally as real estate values contract, the US banking sector continues to wobble and as a result of the storm brewing in European and US commercial property
In adversity there is opportunity and although there is upheaval, we are perfectly positioned and ideally funded to deliver what we set out to do, just in an environment which needs it more now than it did when we started.
The banking sector continues to come under stress not just in the US but around the world and therefore Private Credit is entering the most critical phase in recent history. Robust infrastructures, intelligent underwriting and slick operating processes will mean that the Private Credit industry can continue to fill the void left by some of the mainstream liquidity providers.
Our appetite and market focus remains as it was when we set out – lending on a short-term basis (up to 3 years) to help acquire, refinance or release equity from residential property for HNW individuals.
In every deal, we look for the following things:
- High-quality residential real estate in the UK and Prime International Cities
- Credible high-net-worth borrowers with a strong balance sheet and track record
- A robust and credible repayment strategy
If those 3 things exist in a loan request we will work with the borrower and their advisers to create a funding solution that helps them deliver their plans or solve their current liquidity challenges.
We can lend to any structure, consider any circumstances, cross charge multiple assets in multiple jurisdictions.