Over the past decade, non-bank lenders (NBLs) have significantly expanded and evolved their lending strategies across Europe. As a result, a growing part of the private real estate debt market is now in non-listed real estate debt funds.
Real estate debt carries a set of unique characteristics. The various components of the capital stack offer investors different degrees of exposure to and control over the underlying assets. Some real estate debt investments carry property related risks that are not present in other fixed income investments.
This is the first in the series of INREV papers aimed at bringing more clarity to the private debt segment of the real estate universe.
The paper covers:
- What is a debt fund, and its role in the non-listed real estate market
- What is capital structure, and how different positions also offer various risk and return profiles, as well as payment priorities
- Evolution of the typical capital structures between 2007 and now
- Why invest in real estate debt, and finally
- Further risks and considerations
Download the report, and if you are interested in the topic, please stay tuned for the next Investing in Debt Funds publication.