2024 Alternative Lenders Report: Opportunity Tempered by Complexity
June 01, 2024
Dechert LLP is pleased to have contributed to the 2024 Alternative Lenders report, which delves into the evolving landscape of real estate debt financing in Europe. Our hosted roundtable discussion, titled "Opportunity tempered by complexity," highlights the dynamic role of alternative lenders in today's market.
Report Synopsis
The 2024 Alternative Lenders report provides an in-depth analysis of the debt fund managers who are reshaping the financing of Europe's real estate debt investors. These entities, ranging from investment arms of major insurance groups to independent startups, have expanded their strategies beyond mezzanine loans to include senior debt and whole loans. The insightful and comprehensive report features the annual Debt Fund 30 ranking, editorial analysis, interviews with key industry players, and our roundtable discussion.
Roundtable
The roundtable covers the current state of the European real estate market and the unique position of alternative lenders.
"This is an exceptionally good time for alternative lenders... of the loan originations on which her team is currently advising, around 70 percent involve non-bank lenders against approximately 30 percent where the lender is a bank." – Aparna Sehgal
Aparna elaborates on the changing dynamics within the lending ecosystem, noting the evolution of banks' roles from direct lending to sponsors to increasingly providing back leverage to alternative lenders. Aparna further highlights the creativity and adaptability of lenders in finding ways to collaborate and deploy capital effectively in a complex market environment.
Read the discussion for an understanding on the complexities of deal volumes, fundraising challenges, property value adjustments, and the strategic approaches alternative lenders are taking to navigate this landscape.
Roundtable Highlights
Key points from the roundtable include:
- The shift in lending dynamics, with non-bank lenders leading more deals.
- Banks' narrowed focus, creating opportunities for alternative lenders in complex situations.
- The potential of alternative lenders to fill the debt funding gap and expand into new geographies.
- The evolving role of banks in providing back leverage to alternative lenders.
- The importance of structuring and underwriting loans with risk mitigants.
- The resurgence of borrower bargaining power in certain transactions.
- The impact of interest rate environments on lending strategies.
Explore the Discussion and Report
To gain a deeper understanding of the insights shared during the roundtable and to explore the full scope of the 2024 Alternative Lenders report, we invite you to access the resources below:
- Read our roundtable discussion for a detailed perspective on the opportunities and complexities faced by alternative lenders.
- Access the complete 2024 Alternative Lenders report for a comprehensive view of the industry's landscape and trends.
Request a Hardcopy
For those interested in a tangible copy of the report, please Get in touch with us. We would be delighted to provide you with a hardcopy and discuss how the insights within may impact your business strategies. Please note we have limited copies available and these will be distributed on a first come first serve basis.
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