PODCAST: Exploring the private real estate debt fund ‘ecosystem’

Institutional appetite for private funds offering access to commercial property credit markets is only increasing. But, in this special episode sponsored by ACORE Capital, the firm’s co-managing partners and CEOs explain that the field of options requires education.

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This podcast is sponsored by ACORE Capital

Private real estate debt funds are part of an exponentially growing alternative investment universe, and they are increasingly providing commercial real estate borrowers an expanded field of options beyond traditional bank lenders. In so doing, they are becoming an ever-more popular strategy for institutional investors.

Indeed, as PERE’s latest RED 50 ranking indicates, real estate debt funds stand toe-to-toe with any other form of non-bank lender. Last year, the 50 captured an aggregate $224.26 billion – 18 percent more than in 2021’s iteration, which itself was 20 percent bigger than the inaugural ranking of 2020.

But not all debt funds are created from the same mold. And, as the strategy plays a more fundamental part in today’s institutional investment mix, understanding the difference between a debt strategy funded by CLOs and one that is not, for example, or a debt fund focused primarily on refinancings over issuing new credit, can be the difference between one type of selection and another.

In this podcast sponsored by ACORE Capital, Warren de Haan and Chris Tokarski, co-managing partners and CEOs of the US-focused manager, provide much needed education on these nuances. They also explain why real estate credit as a strategy has the traction it enjoys today and share thoughts on the things successful debt fund managers will do well during this particular period of market uncertainty.