Investing.com — shares fell 3.8% after Bloomberg reported the firm faces a £36 million ($48 million) exposure to Century Capital Partners Ltd., a London-based property lender that filed for administration last month.
The US private credit firm, which manages $307 billion of assets, funded the riskiest tranche of loans originated by Century, a bridging lender focused on high-end central London real estate, according to Bloomberg. The company’s shares fell as much as 4.3% in pre-market trading.
Century entered administration with about £95 million of total debt, days before a larger rival, Market Financial Solutions, fell into a UK form of insolvency. NatWest Group Plc and Hampshire Trust Bank Plc are among Century’s senior creditors, Bloomberg reported.
Century’s administrators at RSM UK expect to recover the full amount of the loans, according to the report. Both Century and MFS relied on funding lines from private credit firms and bank lenders to originate short-term property loans for borrowers who may not qualify for traditional bank financing, typically at higher interest rates. However, creditors have not accused Century of fraud, unlike MFS.
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