On September 29, Andrew Radkiewicz, Global Head of Private Debt Strategy and Investor Solutions and Henri Vuong, Head of Debt Investment Research, discussed opportunities for nonbank lenders across Europe to enter and grow European market share across the risk-spectrum of debt strategies.
Key topics covered:
- Banks continue to dominate the European commercial real estate lending market—but that is changing. An increasingly rigorous banking regulatory environment is creating a financing gap, opening substantial opportunities for nonbank lenders to enter and grow market share.
- Favorable supply and demand dynamics are also driving change. New lending and refinancing backlogs are keeping volumes high, and the pandemic has shifted the risk profile for many sectors, which should help further fuel nonbank financing growth. Investor real estate appetite also remains strong, with persistent interest in both core and noncore strategies.
- This is creating interesting investment opportunities across the risk-reward spectrum. Market disintermediation and dislocation are expanding investment potential across a broad range of strategies, from more conservative to higher value-add portfolios, resulting in structural growth across senior and mezzanine debt opportunities.