Financial Growth in Real Estate Markets

Private real estate debt funds came to fruition, for the most part, out of the aftermath of the financial crisis. During 2009 & 2010 while the banking industry was in turmoil and failing to lend on real estate, private lenders emerged to fill a void in the market. According to research firm, Preqin, institutional private debt funds raised $110 billion in aggregate capital in 2018 and 41% of the capital raised was secured by direct lending funds. Private debt funds have also proven to be popular with investors. At the end of 2018, 91% of investors surveyed by Preqin felt private debt met or exceeded performance expectations in 2018 and 80% of the investors surveyed expect to invest more capital in private debt in 2019.

*Disclaimer: The statements and opinions expressed in this article are solely those of AB Capital. AB Capital makes no representations, warranties or guaranties as to the accuracy or completeness of any information contained in this article. AB Capital is licensed by the Financial Division of the California Department of Business Oversight as a California finance lender and broker (DBO Lic. No. 60DBO-69427). AB Capital makes money from providing bridge loans. Nothing stated in this article should be interpreted, construed or used as legal, financial, investment or tax planning advice, or a substitute for thorough due diligence and the exercise of sound independent judgment. If you are considering obtaining a bridge loan, it is recommended that you consult with persons that you trust including but not limited to real estate brokers, attorneys, accountants or financial advisors.

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