Don't invest unless you are prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Don't invest unless you are prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Downing Wholesale Finance

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A diversified loan book

DWF lend to lenders, those lenders have security against their diversified loan book.

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£75m of loans agreed

DWF has agreed facilities with borrowers totalling more than £75 million (subject to certain conditions), as at 31 August 2023.

About the company

Downing Wholesale Finance (DWF) is a wholesale finance provider that makes secured loans to other lenders. Examples of the types of loans that DWF makes are:

  • Bridging lending, which is short term lending to meet short term financing needs. Typically, these loans are secured on commercial or residential property.
  • SME lending, providing financing to lenders who lend to Small and Medium sized enterprises (SMEs). This lending is secured against the assets within the business.

Why lend to lenders?

Instead of lending directly to small and medium sized enterprises (SMEs) or borrowers who need short term bridging financing, wholesale lending to lenders provides attractive risk-adjusted returns. 

We believe this model benefits from multiple layers of security and comes at a lower level of risk (compared to lending directly to the borrowers), as it covers both the lenders and their diverse loan portfolio, with the lender ultimately having security against the borrowers assets.

Please see below, a brief summary of the risks associated with DWF. 

DWF bonds are classified as a speculative illiquid security and are restricted to High Net Worth Individuals, Sophisticated and Professional investors only.

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FAQs

  • Does FSCS protection apply?

    The Financial Services Compensation Scheme (FSCS) for deposits does not apply to Downing Bonds. There may be circumstances in which investors can claim up to £85,000 of compensation where Downing LLP is unable or unlikely to honour legally enforceable obligations against it (e.g. claims for fraud or misrepresentation). However, investors will not be able to claim under the FSCS simply because a bond fails to repay capital or pay interest. 

  • What are the risks associated with DWF?

    As with all investments, investing in DWF would have risks that you should be aware of and comfortable with before you invest. Your capital is at risk and returns are not guaranteed. 

    Investing in smaller companies will normally involve greater risk compared to investing in larger, more established companies. 

    The past performance of DWF is not a reliable indicator of its future results. 

    The issuer may not generate enough money to pay the loan interest on the Bond. 

    Other parties have equal-ranking security over the assets of DWF, therefore assets available to satisfy the claims of bondholders in the event of a default may be divided and all capital may not be recovered. 

    Some underlying borrowers may not be able to meet their obligations to the finance companies that we lend to. This may impact the financial companies’ ability to service and repay their loan.  

    DWF lends to UK borrowers in the property sector as well as asset finance.  A material downturn in property prices may affect borrower’s and their underlying borrowers ability to repay loans.  

    Both macro and micro economic conditions may affect the asset finance market and affect borrower’s and underlying borrowers ability to repay loans. 

    Before you put money into an investment it is essential that you consider the risks involved. For the full list, please refer to the relevant Offer Document.


  • Who is the team behind DWF?

    Parik Chandra
    Partner and Head of Specialist Lending

    Parik has 20 years’ financial services experience, predominantly focused on debt and the real estate finance space where he has led over 150 transactions, has broader experience including leveraged finance, restructuring and private equity placement.

    Nigel Alexander
    Investment Director

    Nigel specialises in residential development and bridging. Nigel has over 35 years of property lending experience with a particular focus over the past 20 years in bridging lending, having held senior positions at Finance and Credit Corporation and Amicus Finance PLC.

    Jay Magee
    Associate Director

    Jay specialises in the completion and ongoing management of property and wholesale loans. He has 10 years' lending experience having worked with Shawbrook Bank and RateSetter.

    Patrick Walton
    Head of Risk and Portfolio Management

    Patrick heads up the Risk and Portfolio Management of the loan book. He has over 25 years of banking experience, the majority of which is within the real estate sector having help senior roles at NatWest, RBS, HSBC and Homes England.

  • What do DWF look for in a lender?

    Typically DWF will look for lenders who meet the following criteria:

    • Experienced and stable management teams: minimum 5-year trading history
    • Net worth: minimum £1m
    • Existing loan book: demonstrably performing portfolios
  • Am I eligible to invest?

    Downing Wholesale Finance bond is a speculative illiquid security, and therefore, restricted to High Net Worth, Sophisticated and Professional investors only. Once you login to or create an account, you will be able to see the bonds that are available to you.

    To find out more about how investors are classified and why please see the FCA ruling here

We're here to help

To see what bonds are currently on offer please log in to your account, or if you are not yet a member of Downing Crowd you can sign up here

If you need any help or more information you can email us at crowdfunding@downing.co.uk, use the chat function or give us a call on 020 7416 7780.