Case Study: 80% LTV Interest-Only Mortgage for US Private Equity Fund Manager

Explore how lending partners of Fitch & Fitch Private Office have supported high-net-worth clients with bespoke mortgage finance.

Client Profile

A Senior Managing Director and founding partner of a US-based mid-market private equity fund sought to purchase a new home in south-west London. The fund invests across communications, energy transition, and transport infrastructure. The client’s wealth was largely concentrated in co-investments and carried interest positions, with expected realisations over the coming years.

The Challenge

The client was remunerated in US Dollars, with a compensation profile that had grown significantly in recent years due to increased seniority and performance. Much of their net worth was tied up in speculative carry, rather than liquid assets. The client’s key objective was to preserve capital for future fund investments, necessitating a high loan-to-value mortgage with a low deposit outlay.

Detailed underwriting was required to understand the fund’s lifecycle, expected divestment timelines, and the client’s carried interest participation. Given the variable nature of historic income and the lack of traditional liquidity, a lender was needed with deep experience in private capital markets.

The Solution

A lending partner provided an 80% loan-to-value facility on an interest-only basis over 12 years, allowing time for the underlying funds to mature and exit. The mortgage structure was designed to preserve liquidity for future investment rounds, while enabling the client to reduce the LTV over time as capital distributions were received. The client’s carry position was recognised as a legitimate component of both affordability and future repayment strategy.

Result

The client successfully secured the property while retaining financial flexibility to meet ongoing capital commitments. This case illustrates how Private Office lending partners can structure mortgage facilities aligned with fund cycles, carried interest, and long-term private capital strategies.

Disclaimer

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

The case studies featured represent real scenarios supported by our Private Office lending partners. Some details have been amended to preserve client confidentiality.

Mortgages are subject to status, eligibility, and lending criteria. Residential finance solutions are available for properties in England and Wales and are primarily available to UK residents.