Executive Summary

• At $4.8 trillion the U.S. private CRE credit market is an asset class comparable in size to major fixed income markets, offering a robust foundation for diversified investment.
• Private CRE credit enhances portfolio returns by providing predictable income streams and downside protection, while maintaining low correlation to other major asset classes, minimizing additional risk.
• Normalizing interest rates drive high current income while a recovering real estate market strengthens credit fundamentals, boosting the potential for solid returns on new investments while reducing risk.
• Increased need for debt capital, driven by loan maturities, building modernization needs and selective bank appetite, creates opportunities for alternative and flexible financing solutions.
• A growing range of property types, including operational assets, provides an expanded universe of investment opportunities, allowing for greater diversification and higher value-creation potential.