Private Debt

Commercial real estate financing: Average loan volumes are getting smaller

Loan volumes in commercial real estate financing have become smaller in the last ten years. Almost half of those surveyed state that the average loan volume is less than 10 million euros.

Whole loans are an important financing component to ensure the feasibility of many projects

The market for alternative real estate financing remains challenging, but the mood is brightening. The financing environment has stabilised slightly compared to the previous year, and the new reality of high interest rates has reached market players.

Why the new ESMA rules do not slow down open-ended credit funds, but enable them

At first glance, ESMA's new Regulatory Technical Standards seem technical, detailed and difficult to digest. But if you take a closer look, you will see that these rules are not a stumbling block, but an architecture of enablement.

Commercial real estate financing: Loan-to-values fall by almost ten percentage points in ten years

Loan-to-values (LTVs) in commercial real estate financing have fallen by around ten percentage points over the past ten years. This was the result of a special evaluation by the BF. Quarterly Barometer. The loan-to-value ratio sets the loan amount in relation to the market value.

Is ‘timing the market’ applicable for private markets?

Private markets are built for the long haul, yet recent market shifts are prompting investors to reassess their timing. With rising interest rates affecting valuations and slowing capital flows, is this turbulence a chance to enter at a more favorable point?

Alternative Real Estate Debt: A Strategic Window in Europe’s New Cycle

For institutions seeking yield enhancement with downside protection, this cycle offers the optimal entry point into European real estate debt strategies.

Commercial real estate financing in the age of uncertainty – the results of the German Debt Project 2025

This year's report on commercial real estate financing, the German Debt Project, makes it clear that 2025 will not bring a sudden turn for the better, but a gradual revival, albeit unevenly strong according to market segments.

Generative AI in data centres part 3: How GenAI shapes AI sovereignty and data centre investment

In this final instalment, we consider how capital flows for data centre investment are shaped by AI sovereignty and geopolitics, and how the evolution of GenAI will increase their impact.

Generative AI in data centres part 2: The evolution of GenAI and data centre investment implications

Private Debt Sustainable Barometer by NewVest and Tikehau Capital

The Private Debt Sustainable Barometer (“Barometer”) offers a snapshot of how ESG dynamics are currently integrated by some of the largest private debt funds globally.

Back leverage – an underestimated financing instrument in Germany

Although back leverage is still a relatively new concept in commercial real estate financing, it has already established itself as a staple in some markets. US and British investors in particular use this instrument to manage capital structures more flexibly and thus achieve double-digit target returns. In their investment decisions, they are strongly oriented towards real estate cycles and have no reservations about complex financing structures.

Top-down or bottom-up?

Different approaches can be taken when selecting managers and investment products and constructing multi-manager portfolios. We will now discuss what the practical differences are and why they play a role for us.

Navigating the Private Markets landscape in 2025 (so far)

Like other asset classes, Private Markets have had to navigate a 2025 strewn with macro uncertainty. Here, we look at assets we believe are screening positively in the current environment, while asking what needs to change to bolster other sub-sectors.

Deglobalisation 2.0: Infrastructure

While the infrastructure sector is large and diverse, we’ve chosen to focus our last blog of this series on the digital sector where the long-term scale of asset creation is likely to be especially large and the implications of deglobalisation may be particularly relevant.

Digitalisation and European Debt Investing

As global megatrends around urbanisation and digitalisation accelerate, real estate markets are being reshaped in ways that present compelling opportunities for alternative lenders.

Role of Mezzanine Debt in Real Asset Financing: Introduction, European Market, and Impact of Interest Rates

Mezzanine debt plays a crucial role in real asset financing, being particularly useful in large-scale real estate developments, infrastructure projects, and energy assets, where capital requirements exceed the limits of senior lenders but where owners prefer to limit equity dilution.

Real Estate Debt: Market Observations on the Structuring of Whole Loans in Europe

The financing landscape in the real estate debt sector has undergone a profound change in recent years. Understanding the complexity of loan structuring is critical to successfully navigating this dynamic environment.

BESS in Germany 2025 and Beyond: Use Cases, Business Models and Financing Considerations

Sector focus: Continuing our 2025 private credit outlook

In the first part of our 2025 private credit outlook, we offered a broad overview of the prospects for the asset class over the next 12 months. Now, we assess some sectors in a little more depth – namely infrastructure and real estate.

High interest rates and low defaults? A 2025 private credit outlook

In the first episode of the 2025 Outlook, LGIM's experts explain why private credit is well positioned for 2025, supported by still-high interest rates, positive GDP growth in the U.S., and an improving M&A environment.

Webcast online: The top trends in the real estate market in 2025

From data centers to hotels: – take a look at the most exciting developments and forecasts for the global real estate market. Our "2025 Inside Real Estate Outlook" offers exclusive insights, expert analysis and forward-looking strategies that you should not miss.

From data centers to hotels: The top trends in the real estate market in 2025

The expected recovery of the real estate market is likely to vary depending on the sector. Commercial real estate in particular is showing signs of stabilisation and could become the starting point for a new growth cycle.

Beware of tax traps

The fact that the customs authorities – the "weapon-carrying troop of the tax administration", so to speak – stood at the door of some companies unannounced in the run-up to Christmas must have caused some red-hot faces.

European Real Estate Debt

Although the market is not free of risks, there are three main reasons why real estate loans are a compelling investment opportunity – however, a selective approach across sectors is crucial.