MFS software platform put up for sale after lender’s collapse
A software platform developed for Market Finance Solutions has been put up for sale by administrators following the lender’s collapse, CityAM can reveal.
The software, which has been designed to be used in conjunction with Salesforce, was built as an “automated lending platform” including sales, underwriting and ‘KYC’ identity checks for new customers.
“The platform presents an attractive opportunity for organisations seeking to accelerate digital transformation without starting from inception,” according to Gordon Brothers, the firm tasked with handling the sale.
Gordon Partners said MFS had already invested as much as £5m into building the platform and that it was now “90 per cent complete” with documentation to cover outstanding work.
Potential suitors have until 5pm on Wednesday to make an offer to acquire the platform.
A spokesperson for MFS administrators Alixpartners told CityAM: “We can confirm that we have initiated a sale process in respect of a loan origination and servicing platform that Market Financial Solutions had been developing prior to our appointment as administrators.
“It is a key part of an administrator’s role to seek to realise value from a company’s assets for the benefit of creditors.”
Private credit jitters
The sale, which is unlikely to fetch more than a seven-figure sum, is the latest attempt by administrators for MFS to recoup funds for creditors following the firm’s abrupt collapse in February.
Last month the Financial Conduct Authority (FCA) began a probe into the company, while founder Paresh Raja faced a worldwide asset freezing order.
The collapse of MFS, which offered mortgages to customers, has sent shockwaves through the already-jittery private credit world, which has seen funds forced to cap withdrawals after investors rushed to cut their exposure to the industry.
US investment bank Jefferies has revealed a £100m exposure to MFS, while Barclays has totted up its total exposure at just shy of £500m. Hedge funds and private credit lenders including Elliott Management Castlelake and Apollo have also been exposed.
MFS has been accused of securing multiple loans against the same asset, a practice known as double pledging.
London’s super prime property market is set to be flooded with hundreds of luxury homes following the company’s collapse.
Mansions in Kensington, Belgravia, Knightsbridge and Mayfair are being put on sale by administrators for MFS, all of which were controlled by individuals with links to the company.
Lawyers for Raja previously told the Daily Telegraph: “Mistakes have been made but there has been no intention to defraud whatsoever and Mr Raja has not been the beneficiary of any shortfall (if any) there may be.”