New investor strong endorsement of Qualitas

Qualitas has secured a $700 million investment mandate from the Abu Dhabi Investment Authority (ADIA) – which is also lining up to take a near 10 per cent stake in the non-bank lender – giving it more funds to tap a developer demand for credit that remains strong even as borrowing costs rise.

The sovereign wealth fund’s injection, which could rise to $1.7 billion if it takes up the maximum 9.9 per cent stake in Qualitas, boosted opportunities for the financier at a time when interest rates and risk premiums were rising and there was less liquidity, managing director Andrew Schwartz said.

One other major investor, Ethical Partners chief executive Matt Nacard, said ADIA was taking a long-term view of Qualitas’ prospects and welcomed the investor.

“It’s a really strong endorsement, not only of the business but the business model and the market,” he said.