Bain Capital Credit’s special situations strategy became “Bain Capital Special Situations” in Fall 2022.
London, December 9, 2021 – Bain Capital Credit, LP, (“Bain Capital Credit”), announces it has agreed a funding line of up to EUR 183 million to Linus Digital Finance AG (LINUS), the publicly listed real estate fintech business, as part of a broader strategic partnership. A German senior bank is also participating in the credit line.
The proceeds will be used to further accelerate LINUS’ financing operations in the UK and Germany, focusing on the mid-market real estate segment. There are significant deployment opportunities for LINUS and its investors as European construction activity continues to grow at a rate of about 7% per annum – according to Eurostat – from a total annual volume of approximately EUR 800 billion last year.
“LINUS’ business model and in-depth market knowledge of its team, coupled with sound underwriting demonstrated by the historical portfolio performance, are compelling. We are pleased to partner with LINUS to support their growth trajectory as part of our broader European real estate investment portfolio”, says Fabio Longo, Managing Director at Bain Capital Credit.
Beyond the funding line, Bain Capital Credit and LINUS also plan to work on strategic initiatives, such as expanding the investment footprint to other European markets, following the successful launch of LINUS’ digital platform in the UK this year.
“This exciting partnership with Bain Capital Credit is further proof of the value institutional investors see in our business model and deals. It is another important milestone for us in becoming the leading real estate fintech business in Europe,” says David Neuhoff, the founder and CEO of LINUS.
About Bain Capital Credit:
Bain Capital Credit is a leading global credit specialist with approximately USD 52 billion in assets under management. Bain Capital Credit invests across the full spectrum of strategies, including leveraged loans, high-yield bonds, distressed debt and special situations, private lending, structured products, non-performing loans, and majority and minority equity stakes. Founded in 1998 as a private, employee-owned firm, Bain Capital Credit’s experienced team of over 150 investment professionals seeks to identify attractive equity and credit investment opportunities across North America, Europe, and Asia-Pacific. In addition to credit, Bain Capital invests across asset classes including private equity, public equity, real estate and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
Linus Digital Finance AG finances real estate projects with debt and mezzanine capital through a private debt fund which it manages, making it possible for institutional but also semi-professional and professional investors to participate in these investments through a digital platform. The term of the loans is usually between six and 48 months.
A subsidiary of Linus Digital Finance AG is registered with the German Federal Financial Supervisory Authority (BaFin) as a financial investment management company (Kapitalverwaltungsgesellschaft – KVG). Together with its co-investors, LINUS’ funds invested more than EUR 832 million in more than 50 real estate projects since its inception in 2016 (as of September 2021).
Linus Digital Finance AG is listed on the regulated market (General Standard) of Frankfurt Stock Exchange. Linus Capital Ltd. is the British subsidiary of Linus Digital Finance AG and an appointed representative of Infinity Asset Management LLP, which is authorised and regulated by the Financial Conduct Authority (FCA).