In our latest white paper, we discuss the five key reasons for investing in real estate opportunistic credit.
The interest rate hike cycle has drastically re-priced credit in favour of lenders on both an absolute and relative basis.
The transaction set for real estate opportunistic credit is expanding significantly. Thematic opportunities – liquidity based financings and (di) stressed scenarios – that have largely been absent for the past 15 years are potentially vast in size.
Despite talk of price discovery, the basis of real estate valuation is, in our view, far less precarious than in the zero-rate era.
For investors we believe an allocation towards private real estate opportunistic credit can increase diversification, pursue high absolute and relative returns and reduce market correlation. In particular, the UK and European lower mid-market (£20-40m tickets) offers a wealth of attractive opportunities yet vastly reduced competition.