Banks have reentered the market in a meaningful way, and their return has had a real impact on the competitive landscape, compressing spreads across the board. From the borrower’s perspective, that is a clear win, creating more options and lower pricing.
For private lenders, the environment is more competitive. Private lenders still have significant advantages, however, including speed to market, flexibility, and the ability to structure solutions creatively and efficiently. Private, balance-sheet lenders also offer certainty of execution.
It is also important to look at the broader context. Nationally, overall debt volumes were roughly 55 percent higher year-over-year at the midpoint, and the second half 2025 has been even stronger. Increased lending activity clearly is not just banks returning to the market. It reflects a much more active debt market overall.
Banks are returning to the lending market for a few key reasons. First, the balance-sheet concerns t
