Specialist lender Catalyst Property Finance has been acquired by The FHL Group, the sister company of Foundation Home Loans.
The Bournemouth-based lender, which was founded in 2017, will continue to operate under its existing brand as a standalone entity, with no changes to its operational structure or staffing.
The business said the acquisition would provide access to a more diversified funding base, giving it greater flexibility to develop new products and offer more competitive pricing.
Catalyst provides a range of short-term and unregulated loans including bridging finance, refurbishment loans, auction purchases, development exit and development finance, as well as commercial bridging and specialist buy-to-let.
NEW CHAPTER
Chris Fairfax, chief executive of Catalyst, described the move as the beginning of a new chapter for the business.
“Establishing Catalyst as a leading name in specialist finance has been an enormous privilege, and we’re thrilled to be entering the next chapter of this journey with the backing of the group,” he said.
He paid tribute to the team that has helped the firm lend over £600m since launch, achieving strong book performance and consistent profitability.
“From a standing start in 2017 with very limited equity and resources, fuelled by a passion to be pioneering and to challenge convention, we have lent over £600m, with exceptional book performance and profitability in every year,” he added.
PERFECT TIMING
Fairfax said the group’s support would allow Catalyst to continue developing innovative products that address the needs of brokers and their clients.
“The timing was perfect; they were looking to diversify, and we needed funding to enable us to deliver upon our ambitious plans,” he said.
“Brokers can expect Catalyst to launch creative finance products that really meet their clients’ needs, we will continue to invest in and streamline our lending processes, and we’ll always ensure they have the dedicated support from our brilliant team they have grown to expect.”
Pete Ball, chief executive of Foundation Home Loans, welcomed the Catalyst team to the group and said the acquisition would enable both sides to reach new markets.
“Catalyst is already a standout name in bridging and specialist finance, and this move allows us to expand into new areas where they’ve already built a highly impressive reputation,” he said.
Ball stressed that the acquisition would not affect Catalyst’s day-to-day operations. “There will be no operational or resource changes as a result of the acquisition,” he said.
“Our role is to support Catalyst with an enhanced, diversified funding line, and to help it achieve the long-term ambitions and growth plans that we, and they, have for the future.”
