A dramatic power shift has occurred in real estate debt as banks have pulled back on lending, with their share of originations plummeting from 38 percent to 18 percent in the past year, according to Hamilton Lane’s newly released 2025 Real Estate Market Overview.
This void is being filled by life insurance companies (43 percent) and alternative lenders (34 percent). Debt funds are also seeing a 70 percent year-over-year increase in origination volume as they step in to capitalize the market.
Certain alternative real estate sectors bolster strong long-term fundamentals and demographic tailwinds for private real estate. Coupled with significant investor appetite and diversification benefits to core real estate, they should continue to play an important role in investor portfolios going forward, the report said. In addition to data centers, these in
