Alternative Bridging initially scheduled to commence regulated lending in Q1 2014, so today’s announcement is many months ahead of schedule and coincides with its new website going live - www.alternativebridging.co.uk - and the introduction of its new image.
Jonathan Rubins, CEO of Alternative Bridging, explained how it was Bridging & Commercial that first made him aware that Cheval was looking at funding and exit options. Initial contact was made early this summer and by August a deal was agreed with the owners of Cheval. Change of control was applied for and granted by the FCA in August, aided by the expert input of Ray Cohen of Jackson Cohen, Alternative Bridging's compliance adviser.Buying Cheval and immediately attaining a regulated entity was an appealing proposition for Alternative Bridging. The lender had been accepted for regulation a couple of years ago, but decided to first focus on establishing a dominant position in the non-regulated, commercial market. With this done, and anticipated changes in the regulatory environment, the opportunity to acquire a well-respected brand with the benefit of FCA regulation proved irresistible.
Alternative Bridging has always viewed itself as a bespoke lender and the addition of regulated products to its offering sits alongside and complements its commercial lending activity. The Cheval acquisition now means that Alternative Bridging is a one-stop-shop for its brokers and Jonathan said: “There’s always room for a new competitor and it is a great opportunity for us to grow our brand and company.” Jonathan went on to say, “there were numerous reasons for acquiring Cheval, including its name and reputation which are second to none. It’s a trusted brand and is well-known for quality products and service.”
A number of highly respected industry figures, who have previously worked at Cheval, have gone on to have executive positions at Dragonfly Property Finance, Precise Mortgages, United Trust Bank and one is even the Chairman of the astl.
B&C can also reveal that Allan Kay, previously of Cheval Bridging Finance, has been appointed Managing Director of the acquired company. Allan was key in the acquisition talks and when B&C met Jonathan he admitted: “Allan is one of the primary reasons we really wanted the company. From sitting with him on the astl committee I knew him to be a vocal, well-informed member and an industry heavyweight”. Allan has since responded saying: “I was keen to work with Jonathan and the team at Alternative Bridging, and once I knew a deal with them was on the cards, it was definitely my preferred choice. They were a far better fit for Cheval when compared to other potential buyers. I left Cheval in June this year and had to be incognito for a while, but now I can’t wait to start lending again.”
The team at Alternative Bridging is ready and excited to process new, regulated deals and will also recruit an additional underwriter to focus on the regulated loan book. Asked about numbers and goals, Jonathan said: “We haven’t set targets but would like to see it grow on strong foundations to be an important area of our multi-faceted business – we are well funded by our shareholders and ready, both financially and operationally, for this expansion.”
As well as lending from £100,000, Alternative wish to target larger regulated loans, especially for the business community, and rates will start from 0.95 per cent for its Prime Residential product, with an option to lend up to 75 per cent LTV in prime locations.
At B&C we are not surprised that Jonathan and the team at Alternative Bridging are excited… This acquisition is not only a strategic step forward for them but a real statement of their intent to grow their brand. It’s also great to see that Cheval’s legacy will live on with this deal.
The new look Alternative Bridging will be represented at the upcoming FP Show on 6th November.
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