Borrowers and Private Lenders Are Finding Common Ground

In the world of private credit, both borrowers and lenders are finding renewed opportunity—despite rising interest rates, geopolitical uncertainty, and policy shifts like the recent U.S. tariff announcements. 

Resilience in Volatility

Recent months have tested the private lending ecosystem. The “Liberation Day” tariff announcement in April 2025 caused a brief pause in activity as sponsors and borrowers recalibrated. But rather than leading to a prolonged freeze, the market demonstrated resilience as borrowers quickly returned to market. Private lending's adaptability continues to help fund businesses despite external shocks.

Lenders welcomed the return of pricing discipline. After years of benign credit conditions, the volatility encouraged better risk-based pricing and helped distinguish long-term players from so-called “tourist” capital. This dynamic has created a healthier environment for mutually beneficial deal-making.

Strategic Flexibility for Borrowers

For landlords and CRE investors private loans offer a highly tailored alternative to public financing. Unlike public debt markets, where terms can be rigid and visibility high, private credit allows for customized structures, confidentiality, and faster execution. 

Borrowers are also seeing increasing value in dual-market relevance—being able to toggle between private and public financing depending on market conditions. The flexibility to tap both options gives borrowers and investors more leverage, more stability, and more choice.

Enhanced Access and Returns for Investors

Private credit continues to deliver compelling risk-adjusted returns for CRE investors. With base rates still elevated, direct lending portfolios are producing yields comparable to private equity—with far less volatility, no J-curve, and more consistent cash flows. And thanks to the rise of semi-liquid structures like interval funds access to this asset class has expanded beyond institutions to high-net-worth individuals.

A Converging Market

Both lenders and borrowers are discovering that private credit offers more than just capital—it provides strategic partnership. In today’s environment, private lending is no longer just an alternative—it’s an essential part of how capital is raised, deployed, and returned. And both sides of the table are reaping the benefits.