On October 24, 2024, Benefits and Pension Monitor, in collaboration with Fiera Capital, hosted a webinar featuring industry experts to discuss the rising appeal of private real estate credit as an alternative to traditional fixed-income investments. The event brought together Michael Le Coche from Fiera Real Estate’s Research and Predictive Analytics, alongside Martin Saulnier, Hans Jain, and Daniel Jacobson, who examined the growing popularity of private real estate credit.
Private real estate credit stands out for its potential to offer higher yields, better diversification, and reduced exposure to the volatility that characterises public markets. With inflation challenging the stability of traditional bond markets, this asset class provides a steady income stream that is gaining attention from financial advisors and individual investors looking for consistent returns in uncertain times.
The webinar placed a strong focus on recent regulatory changes impacting the lending landscape. New restrictions under Basel IV regulations are limiting lending capacity for traditional banks, creating financing gaps that private credit lenders are well-positioned to fill. This shifting regulatory environment is generating fresh opportunities for private lenders to expand their roles, especially as they step in to provide funding solutions that traditional institutions cannot fully meet under the current constraints.
Another key point addressed was private real estate credit’s favourable risk-return profile. Unlike traditional fixed-income assets, private real estate credit delivers more stable returns without exposing investors to the dramatic swings of public markets, offering a more balanced approach that can enhance portfolio stability. This combination of stability and potential yield is increasingly appealing to investors who seek a robust addition to their portfolios.
Sustainability in investment was also a central theme, as environmental responsibility becomes an integral part of real estate lending and development. Experts emphasised the importance of aligning financial performance with environmental goals, noting that sustainable strategies are not only meeting regulatory standards but are also positioned to improve long-term financial returns. This alignment underscores a broader trend toward responsible investment, with sustainability now viewed as a cornerstone of sound real estate credit strategies.
Throughout the webinar, participants were encouraged to view private real estate credit as a means of strengthening portfolio resilience and seizing new market opportunities. Attendees came away with practical insights on how this asset class can help address economic challenges, making it a strategic component for investors seeking both stability and growth potential.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.
