In this episode of Private Lending Insights, I interviewed Christian Faes, CEO of F2 Finance, LLC. Christian shares his journey from founding and scaling a multi-billion-dollar U.K. lending platform (LendInvest) to launching F2 Finance in the United States. The conversation covers F2’s balance sheet lending model, bridge loan guidelines, land and commercial deal appetite, state-by-state strategy, and how they compete in a highly competitive private lending market. We also dive into F2’s capital structure, fund model, foreclosure philosophy, and what Christian sees ahead for private lending in 2026.
Interview Summary
In this episode of Private Lending Insights, Rocky Butani sits down with Christian Faes, CEO of F2 Finance, LLC, to discuss building a differentiated private lending platform in today’s competitive U.S. market.
Christian brings a unique background to the conversation. Before launching F2 Finance, he founded and scaled LendInvest in the United Kingdom, growing it into one of the largest non-bank mortgage lenders in that market. After raising institutional capital, building a technology-driven lending platform, and taking the company public, he relocated to California and launched F2 Finance in 2023. He initially deployed his own capital before raising a dedicated fund and securing institutional backing.
A True Balance Sheet Lender
Unlike many private lenders that originate loans for resale into warehouse lines or securitizations, F2 Finance operates as a true balance sheet lender. The company manages discretionary capital through:
- A private fund for accredited investors
- Two institutional capital partners
- Multiple SPV lending vehicles
Because F2 is not underwriting to a third-party institutional “credit box,” the firm evaluates deals on a case-by-case basis and takes a portfolio-level view of risk rather than competing solely on maximum leverage.
Loan Programs and Credit Philosophy
F2 primarily focuses on short-term bridge loans, typically 12 months or less. Key characteristics of their lending approach include:
- Typical maximum leverage around 75% LTV (occasionally 80%)
- Cash-out refinances generally capped near 70% LTV
- Interest rates typically ranging from 9.9% to 13%
- Minimum loan size around $300,000 (with flexibility in certain cases)
- Maximum loan size generally around $3 million
The company does not fund ground-up construction but will finance stabilized residential properties, quick-close purchases, selective cash-out refinances, and certain commercial or residential land transactions under conservative structures.
F2 has funded partner buyouts, time-sensitive purchases with earnest money at risk, flood-damaged properties, and low-leverage commercial deals. While the firm can consider borrowers with lower credit scores, the portfolio average FICO remains around 700. The focus remains on sensible leverage, borrower liquidity, and clearly defined exit strategies.
Geographic Strategy
F2 currently lends in 16 states, with primary focus on California, Florida, and Texas. The firm prefers non-judicial foreclosure states to manage downside risk but remains active in Florida due to strong relationships and market familiarity.
Rather than expanding rapidly into every state, F2 is focused on disciplined growth in markets where liquidity, foreclosure timelines, and broker relationships align with their risk management approach.
Competing in a Crowded Market
The U.S. private lending market is highly competitive, with significant institutional capital and thousands of lenders originating similar products. F2 differentiates itself through:
- Fast decision-making and quick feedback
- Direct balance sheet funding
- Flexible underwriting
- Technology-enabled internal systems
- A strong focus on borrower and broker experience
Because F2 controls its capital, the team can move quickly on time-sensitive deals without relying on third-party loan buyers or securitization approvals.
Capital Structure and Investor Model
F2’s fund structure offers investors a fixed coupon return with a one-year lockup period. The fund is designed to align investor liquidity with the short-term duration of the underlying loan portfolio. The company also maintains a Cayman feeder vehicle for international investors seeking efficient access to U.S. residential credit exposure.
While returns are not guaranteed, the structure prioritizes capital preservation and alignment of interests between management and investors.
Risk Management and Outlook
F2 has navigated a small number of defaults, which Christian views as part of disciplined lending. The firm focuses on conservative leverage and avoids aggressive high-LTV strategies that leave no margin for error.
Looking ahead, Christian expects continued competition in private lending, potential transaction volume improvement as interest rates stabilize, and increasing scrutiny on overly aggressive lending models. His long-term strategy is steady and disciplined growth — building a sustainable platform focused on pricing for risk, protecting capital, and delivering consistent performance over time.
Visit F2 Finance‘s profile, and contact them directly. They pay us a monthly subscription, so there is no cost to reach out to them through our platform. Connect with Christian Faes on LinkedIn.
