Christian Faes is the CEO of Faes & Co, an investment firm specializing in private credit, and the founder of F2 Finance and LendInvest, a publicly traded UK digital mortgage lender.
In this episode, we discuss Christian’s journey from law to entrepreneurship, the evolution of financial sector disruption, the rise of private credit, and the advantages of specialized lending. Additionally, Christian offers key insights for private credit investors and discusses the role of technology in enhancing niche lending markets.
Please enjoy our conversation with Christian Faes.
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Links:
The Investipal Podcast is produced by www.investipal.co. Past guests include Peter Lazaroff, Douglas Boneparth, Jamie Hopkins, Tyrone Ross and many more.
Follow us on LinkedIn: www.linkedin.com/company/investipal | www.linkedin.com/in/cameronhowe/; Twitter: www.twitter.com/camhowe16 | www.twitter.com/investipal; Tiktok: www.tiktok.com/@camhowe16 | www.tiktok.com/@investipal; or Instagram: www.instagram.com/investipal/
Find Christian Faes at:
https://www.linkedin.com/in/christianfaes/
https://x.com/christianfaes?lang=en
https://www.faes.co/
https://www.f2yes.com/
https://www.lendinvest.com/
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Key Takeaways
- How Governments Can Support Innovation: The UK's proactive approach to encouraging FinTech innovation post-2008 financial crisis demonstrates the significant role of supportive government policies and regulatory frameworks in driving industry growth. This strategy has resulted in considerable investment, establishing the UK as a world leader in financial technology.
- Gradual Disruption of the Financial Sector: The transition from initial revolutionary expectations in FinTech to a more steady, evolutionary integration underscores the difficulties of displacing well-established financial incumbents. It also emphasizes the importance of technology in gradually enhancing and transforming traditional financial services.
- Increasing Interest in Private Credit: The surge in private credit interest is driven by significant shifts in the investment landscape, including a decrease in publicly listed companies and heightened banking regulations post-2008. These changes have opened opportunities for private lenders to provide more adaptable and efficient financing solutions, catering to borrowers not adequately served by traditional banks.
- Gaining Competitive Advantage through Technological Specialization: The effective integration of technology in specific lending markets, such as real estate bridging finance, exemplifies the competitive benefits of combining specialized knowledge with tech-enabled operations. This approach enables agile companies to meet specific customer needs more effectively than traditional banking institutions.
- Key Considerations for Private Credit Investment: When assessing private credit opportunities, investors and advisors should concentrate on diversification, the manager's experience and track record, and the institutional rigor of the funds. These factors are essential for making well-informed and strategic investment decisions in the private credit market, ensuring a diverse and resilient investment portfolio.
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Timestamps
00:00 The Journey from Lawyer to Lending Entrepreneur
02:05 The UK's Role in Fintech Innovation
06:25 The Rise of Private Credit
11:09 Increased Appetite for Private Credit
13:22 Banks Investing in Private Credit Funds
20:05 Advice for Investment Advisors on Private Credit
