The fund, which has a target raise of £300m, currently has more than £200m in capital for the new fund from existing investors.
LendInvest said the fund will continue the investment strategy of the firm's previous flagship fund, the Real Estate Opportunities fund, which launched in January 2014.
As in LendInvest's other fund, it will be focused on short-term transactional loans providing financing for the firm's bridging and development loans.
LendInvest said investors in the fund will "benefit from improved headline terms and structure, designed to be attractive and competitive to investors in the current market".
The headline management fee for the fund will be 1.5% and the performance fee will be "15% over a hurdle," according to a spokesperson from LendInvest.
Janus Henderson fund closure an 'ill omen' for wounded open-ended property sector
The open-ended direct property sector has seen serious difficulties since the beginning of the pandemic, most notably with the Janus Henderson UK Property PAIF closing in April this year. Three fund managers also imposed liquidity requirements on their property funds last month, due to the impact of rising interest rates.
However, the LendInvest fund finances loans for property, rather than investing directly in the properties themselves.
Omega Poole, head of funds management at LendInvest, said: "Over the last couple of years, we have pro-actively solicited feedback from our existing investors and the wider market, and looked to design a fund which is attractive and competitive in today's market.
"To have more than £200m of capital already committed is fantastic, and the successful launch of this new flagship fund demonstrates that our investment strategy continues to appeal to a wide range of investors seeking to finance UK housing on a senior secured whole-loan basis."