At Blackfinch, creating long-term value for investors in the Adapt Inheritance Tax (IHT) Service is not only about the sectors we invest in – it’s also about how we manage risk, track performance, and maintain rigorous oversight.
While the service includes exposure to a range of trading activities, one core component is specialist property lending, managed by our in-house Property team. These investments are structured to be secure, stable and well-supported. But what truly sets them apart is the depth of monitoring and the team’s unwavering commitment to doing things right.
Risk Reduction: More Than Just a Safeguard
Managing risk is fundamental to how we run our portfolios. Our Property team takes this responsibility seriously – implementing a robust programme of checks that provide insight, control and reassurance.
From the outset, each development site is visited regularly by a Royal Institution of Chartered Surveyors (RICS) Monitoring Surveyor. Their monthly reports cover every aspect of a project, from progress, cost control and compliance to planning and safety. These reports are more than routine updates – they provide a lens into the real-time health of the investment.
Our own team members also maintain a regular presence at sites. As a minimum, they conduct quarterly checks on active developments and annual visits for other property types. These site visits help us verify that funds are being used for their intended purpose and that all works remain on track.
But our risk management doesn’t stop there. We monitor insurance status on all properties, contractors and advisers, making sure appropriate coverage is always in place. In addition, we carry out daily, weekly and monthly internal reporting, ensuring every stage of the loan lifecycle is tracked and reviewed by senior team members and the Investment Committee.
Credit risk is kept in check through daily updates from external agencies, while bespoke loan monitoring software allows us to review live and historic financial data across the portfolio with ease.
Responsible investing principles are also embedded throughout. We incentivise improvements such as better Energy Performance Certificate (EPC) ratings to reduce risk and enhance the quality of our assets.
Managing Value: Proactive, Not Reactive
Long-term value and consistent outcomes don’t happen by chance. Our Property team takes a proactive approach to maintaining – and often improving – returns.
Loan repayments and cashflows are tracked weekly, and we act quickly to manage any shifts in loan-to-value ratios. Where needed, we’ll structure new repayment plans, revaluations, or call in guarantees to protect investor capital.
We manage drawdowns alongside our surveyors to ensure building works remain on time and on budget. If costs increase unexpectedly, we work with borrowers to recover the difference, again safeguarding the value of the loan.
Interest rates are monitored and adjusted during loan restructures, enabling us to reflect changing market conditions and improve returns where appropriate. Bank statement checks occur with every drawdown to detect and prevent misuse of investor monies. Every quarter, our Finance and Commercial teams produce detailed performance reports which are shared with our Investment Committee and company leadership.
Responsible Lending in Practice
From stringent credit analysis to climate-beneficial incentives, our approach is hands-on and high-touch. It’s this combination of careful oversight and forward-looking decision-making that helps deliver the stability investors expect from the Adapt IHT Service.
Every step we take is designed to reduce risk and support positive outcomes – because when we lend responsibly, everyone benefits.
If you’d like to explore how the Blackfinch Adapt IHT Service could support your clients – or to discuss the underlying property strategy in more detail – your regional Business Development Manager can provide a tailored session, whether that’s technical training, client case planning or a broader conversation around IHT opportunities. Email us to find out more [email protected]