The investment opportunity
- Product: high quality prime residential mortgages secured by owner-occupied residential real estate in the Netherlands, and originated by Venn Hypotheken
- Investment Structure: secured pass-through note – the note economics will replicate the underlying performance of the mortgages (net of expenses)
- Mortgage Tenor: 30 year mortgages with initial fixed rate period of at least 10 years
- Target Returns: subject to duration and product type
- Amount: up to EUR 100-500 million per investor per close
- Ramp Up Period: 6 months
Attractive risk-adjusted return profile on spread to swaps basis
- Among the widest-priced prime mortgage markets in Europe
- Additional pick up over prime European government and corporate bonds
- Pricing underpinned by significant demand for mortgages (annual volumes of €60-80bn) and limits to the supply of bank credit
- Strong borrowing culture and aversion to insolvency
- Strong legal and creditor regime
Extremely strong performance characteristics
- Low historical loss rates relative to rest of Europe(2)
- NHG mortgages benefit from Dutch government guarantee
- Non-NHG mortgages performed strongly through the financial crisis
Independent Mortgage Brand and Distribution Network
- Venn Hypotheken was established by Venn Partners as an entirely new mortgage brand in Q1 2016, targeting prime mortgages across the spectrum of fixed rate tenors and LTV buckets
- Drawing upon the experience of its management team, Venn Hypotheken has been designed and built to be the most cost-effective and operationally efficient platform in the market, using high quality intermediary networks and the best
business partners for each step in the loan-processing chain
– Loans are distributed through a network of approximately 3,000 intermediaries across the Netherlands
– 6 regional service centres are used for loan application processing – ensuring short loan offer completion times without compromises on quality
– Primary mortgage servicing is delegated to Stater Nederland B.V. – the largest independent residential mortgage servicer in the Netherlands and the most highly rated mortgage servicer in Europe
– Portfolio management and reporting provided in-house by an experienced investment management team at Venn Partners - Venn Hypotheken’s business model is accessible to institutional investors seeking superior risk-adjusted returns in
significant volumes
Our Team and Experience
Dutch Mortgage Expertise and Experience
- Venn Hypotheken is an AFM regulated offerer of credit to Dutch mortgage borrowers
- The company has assembled a team of senior Dutch residential mortgage experts based in Breda, covering distribution, marketing, underwriting, interest-rate setting and loan management
- The team is led by Marc De Moor, an experienced banking and insurance professional and former CEO at a leading Dutch mortgage lender, where he built the platform into a €15bn loan book by adopting a no nonsense low cost and risk averse approach
- Funding, capital markets and structuring activities are led by Venn’s experienced structured finance team in London – whose achievements include the establishment in 2014 of the first non-bank publicly placed Dutch RMBS transaction since the financial crisis (Cartesian Residential Mortgages 1 S.A.)
Group-wide experience of direct lending investments
- Venn Partners is a specialist investment manager focused on direct lending opportunities in Europe
- Founded in 2009, Venn manages primary loans across various lending markets, including:
– prime Dutch residential mortgages, where it manages EUR 500m of seasoned loans and new mortgages originated by Venn Hypotheken;
– commercial real estate debt, where it has closed in excess of EUR 1.5 bn of lending and manages in excess of EUR 500m of capital; and
– prime rental housing in the UK, where it is the sole manager of a £3.5bn government guaranteed lending scheme - Venn has also developed a proprietary risk analytics system, which supports its investment management activities and is licenced to a UK government portfolio management team
- Venn has a strong team of experienced asset-backed lending professionals from a range of backgrounds from retail and investment banks, rating agencies, mortgage services and law and accounting firms
- Using its experience from various direct-lending asset classes, Venn is able to provide investors with extensive services in portfolio management, loan-analytics, reporting and treasury functions
Marc de Moor
CEO
Venn Hypotheken
Peter Arrazola
CCO
Venn Hypotheken
Angeline de Wit
Head of Operations
Venn Hypotheken
Gary McKenzie Smith
Managing Partner
Venn Partners
Kawai Chung
Mortgage Strategy & Funding
Venn Partners
About Venn Hypotheken
Our product reflects the new landscape of customer demand and cost-efficient direct lending, without compromising on rigorous underwriting standards.
Open to flexible
employment contracts
Additional lending for
energy-saving measures
Transparent, reliable
and fast service
Efficient and scalable
processing systems
FX.nl:
“The new lender positions itself as an offeror of understandable mortgages. With the presentation on the website they succeed in that. Venn Hypotheken’s rates are sharp. The lender scores top 3 in the LTV buckets 85% and higher”.
Consumentenbond:
“For the target group (consumers with a mortgage without NHG) Venn Hypotheken offers affordable mortgages across the board. Loan terms are competitive”.
For further information, please contact:
Venn Hypotheken
Claudius Prinsenlaan 111
4817 HC Breda
0031 (0)76 3033903