Just over 12 months ago we released our list of who we considered the top 5 non-bank financiers we dealt with in the 2024 financial year. It is about time we did this again to cover off the last 12 or so months.
Not all non-bank lenders are created equal, some can provide additional leverage, some can service different locations and some suit bridging loans over development lending. The below is an honest appraisal of who we think are the best in market at the moment. With over 150 options on our list we had a few to choose from!
5 – Killarney Capital Limited
At number 5 this year we have Killarney Capital Limited. Killarney are a mid-sized non-bank lender based in Hastings. Killarney were established in 2010 and have since funded many projects throughout New Zealand.
Killarney are a privately funded lender meaning they aren’t constrained by arbitrary lending criteria imposed by a third party and can be flexible when it comes to funding solutions.
Killarney capital can be priced slightly above some other funders in the market, however, often make up for this with some flexibility in their terms and the locations they have appetite to provide funding to. They are best suited to development lending as opposed to bridging finance, however, can look at both.
What really stands Killarney out is their appetite to look at funding in more regional locations across New Zealand. On top of this Killarney, being privately funded, can look at different funding solutions be it mezzanine finance or even on occasion a Joint Venture type arrangement. They are well suited for projects up to $15M.
Lateral Partners enjoy working closely with Richard and the team (all very personable!) to put together solutions for their clients.
Benefits
- Flexible lending criteria & creative thinking
- Appetite to fund more regional locations
- Collaborative approach when funding projects.
Limitations
- Pricing. Being privately funded they can struggle to compete on pricing at times.
- Smaller non-bank limiting maximum deal size.
- Often require a QS and Valuation.
4 – First Mortgage Trust (FMT)
Slipping down a few places this year is First Mortgage Trust (FMT). FMT are perhaps the largest and most well known non-bank lender in New Zealand. With a head office in Tauranga and further offices in Auckland, Wellington and Christchurch FMT have boots on the ground in most major NZ cities and the ability to easily lend nationwide.
As a contributory fund FMT have approximately $1.80bn NZD under management giving it great capacity to lend at scale. Adopting a risk profile closer to a main bank it also means that FMT strive to price themselves more competitively than most if not all the non-bank market. However, the last 12 months, with the falling OCR has seen pricing improve significantly with some more traditional non-banks closing this gap. FMT’s risk profile means certain transactions will not fit but they are very well priced and effective for those in their wheelhouse.
With Capital Group (a top NZ mezzanine financier) as their owner FMT are also able to look at highly leveraged solutions for transactions with healthy margins and sales.
For transactions commanding a better price point whilst achieving more flexibility than the bank FMT are Lateral Partners go to funder whether it is development finance, bridging or commercial property.
Benefits
- Can fund up to $40M+
- Well priced (close to a bank).
- Nationwide presence
Limitations
- Risk profile closer to a bank than most others.
- Quick indicative terms but slower formal credit process.
3 - Mount Capital Limited
Debuting on our list at number 3 is Mount Capital Limited (Mount). Mount are a newer entrant to the Non-Bank finance market establishing themselves formally in 2023. Mount was founded by Tyler Tabak and Tommy Seton after being frustrated with the funding landscape when securing finance for their own project and they have done a great job with the business.
For the majority of their business Mount Capital raise funds from investors through wholesale funding rounds and lend these out alongside some wholesale funding lines. This does provide some boundaries to Mounts credit process through their fund. Mount, however, also have a specific Deal by Deal fund which allows them to place capital directly into transactions for investors. From a borrowers point of view this allows them to look creatively at robust transactions placing unique capital solutions to enable deals to proceed.
Also, being based at the Mount, Mount Capital have an appetite to look at transactions that may be further afield than a traditional main city centre which can be of great value.
Mount Capital are well placed for both bridging and development finance transactions up to $15M looking at larger transactions on a deal-by-deal basis.
Tyler and Tommy (the founders) are knowledgeable and professional ensuring a smooth and clear pathway with transactions which resonates well with borrowers and their professional teams.
Lateral Partners enjoy working with Mount Capital to structure deals and help clients get their projects funded across New Zealand.
Benefits
- Quick decisions and simple credit process
- Ability to look at flexible solutions in their Deal by Deal platform.
- Professional and knowledgeable with great communication.
- Happy to look at wider locations in NZ.
Limitations
- Funding profile can make their senior fund credit policy restrictive.
- Younger business still growing which can limit deal sizes.
2 – ASAP Finance
Just pipped to the top spot this year is ASAP Finance (ASAP). ASAP finance are one of the larger and well-established non-bank lenders in NZ. Establishing in 2004 ASAP finance has been around for 20 years and was founded with by brothers Adarsh and Darpan Patel who remain actively involved in the business.
ASAP take pride in having a tight knit team that are intimately involved in their clients transactions with a deep property development and finance understanding. Each member of their team have been involved in their own developments and enjoy working closely with their clients to help them deliver their own projects.
ASAP are funded partly through the family office of Adarsh and Darpan alongside some wholesale finance lines. Having been around for over 20 years and with great success ASAP finance have grown their book to north of $600M making them one of the larger non-bank lenders in New Zealand.
ASAP are a very flexible on loan terms often not requiring pre-sales, valuations or QS involvement. This can be limiting, particularly around valuation where there can be disputes as to values, however, it does mean they can move quickly and make practical decisions for projects.
Their size also allows them to look at large funding opportunities with the ability to fund projects up to $50M and beyond.
At Lateral Partners we find ASAP a compelling solution for small – mid sized developments (particularly in this market) given they don’t require pre-sales and their pricing structure (higher interest rate but no line fee) which can make them cheaper than the alternative alongside the savings on a QS and valuation.
ASAP also build very strong relationships with repeat clients and are happy to consider great flexibility where a strong bond has been built.
Benefits
- Can fund up to $50M+
- Speed of approval and drawdown – can be within days.
- Lend in all major NZ cities.
- Lack of required consultants and pricing structure meaning they are often cheaper than an alternative.
Limitations
- Internal risk measures which can be conservative.
- High rates which can make bridging or land banks difficult.
1 – Vincent Capital Limited
Our number 1 NZ non-bank for the 2025 year is Vincent Capital Limited (Vincent). Vincent is a good sized non-bank lender in New Zealand funding projects nationwide. Vincent were established in 2017 and have offices in Auckland and Christchurch making them one of the few non-banks to have offices in different locations.
Leo Li, the principal of Vincent Capital, also owns a land development business Founders (https://foundersgroup.co.nz/). Under this entity Leo and his team tackle subdivision and development projects of their own. This allows Vincent Capital a good perspective into development given their deep understanding of project mechanics and requirements.
Vincent Capital are very experienced lending into a multitude of developments from in-fill townhousing through to greenfield subdivisions. Vincent employ a significant amount of technology within their business allowing them to provide quick decisions and flexibility on their financing requirements.
Often Vincent Capital are able to move forward without the need for valuations or a QS, similar to ASAP finance, which helps close deals quickly, save money and give flexibility to clients.
Vincent Capital are also comfortable to look at funding solutions that may be unique or provide higher leverage than other funders. Having secured a $300M finance line from Goldman Sachs in July 2024 Vincent have really pushed hard to grow their book and help development clients across New Zealand. Their team are personable and flexible to work with making for great relationships with clients.
At Lateral Partners we find Vincent Capital a compelling solution for both small and large developments often looking to compete on price and leverage.
A big congratulations to Vincent Capital Limited!
Benefits
- Can fund up to $100M+
- Speed of approval.
- Lack of required consultants providing flexibility and cost savings.
- Collaborative approach from their team with clients.
Limitations
- Pricing - Vincent can often find themselves more expensive due to rigidness with line fees making them uncompetitive and unsuited to term debt.
- Limited to main town centres / Auckland adjacent areas.
So that was our top 5 list. Some other notable companies to mention but couldn’t crack the top 5 this year are Cressida, Pallas and Finbase.