Private capital lenders that initially stepped in to fill a post-2022 banking retreat are now entrenched as core providers of commercial real estate financing. Debt funds and investor-led groups are well capitalized and increasingly active across a wide range of strategies rather than concentrating solely on short-term bridge lending. Their share of loan originations has been steadily rising, reflecting both structural growth in private credit and persistent demand from borrowers. A major driver of activity is the wall of maturities, as owners refinance loans originated at ultra-low rates into a materially higher-rate environment. Private lenders are also addressing financing gaps created by asset repricing, particularly in multifamily and industrial properties financed at peak valuations. Competition is most intense in the middle of the market, while relative value is often found at the smaller and larger ends of the loan-size spectrum. Borrowers are benefiting from abundant liquid
