Real estate debt

CRE debt provides the potential for:

• Stability: CRE debt occupies a more secure part of the capital stack than equity, potentially offering a measure of downside risk mitigation
• Income: Well-structured CRE debt offers the potential for steady and relatively high income-focused returns  
• Relative value: Attractive risk-adjusted return potential relative to fixed income investments and direct real estate, particularly late cycle  
• Diversification: Modest correlations to fixed income and direct real estate allocations can provide diversification in a multi-asset class portfolio.
• Market opportunity: Structural changes in the CRE lending market have created a long-term opportunity for alternative lenders to originate CRE debt investments with attractive risk-adjusted target return potential.