Private real estate credit gains momentum as investors seek stable returns amid market changes | Benefits and Pension Monitor Industry News
Private real estate credit gains momentum as investors seek stable returns amid market changes
On October 24, 2024, Benefits and Pension Monitor, in partnership with Fiera Capital, hosted a webinar titled “The Rise of Private Real Estate Credit in Canada’s Evolving Investment Environment.”
The event brought together industry experts including Michael Le Cauche, Director of Research and Predictive Analytics at Fiera Real Estate, along with Martin Saulnier, Hans Jain and Daniel Jacobson, discussed the increasing appeal of private real estate credit as an alternative to fixed assets. – Investments with income.
Private real estate credit is positioned as an attractive asset class, offering higher yields, improved portfolio diversification and reduced exposure to the volatility seen in public markets.
Among the topics covered, regulatory changes were a major focus. Basel IV regulations tighten lending restrictions on traditional banks, leaving private credit lenders with a potential funding gap.
This regulatory environment is creating new opportunities for private lenders to expand their role in the market.
Private real estate credit also exhibits favorable risk-return characteristics. Compared to traditional fixed income products, they deliver more stable returns and provide a balanced approach to portfolio enhancement without exposing investors to dramatic fluctuations in public markets.
A panel discussion discussed how Canada’s regional real estate markets exhibit diverse dynamics that impact private real estate credit strategies. Recognizing and adapting to these regional differences can help investors identify promising areas with high growth potential.
Sustainable investment strategies in the real estate credit sector were also a key focus, as sustainability has become essential in real estate financing and development. Experts emphasized the importance of aligning environmental objectives with financial performance in this sector.
Throughout the webinar, participants were encouraged to consider private real estate credit as a way to strengthen portfolio resilience and take advantage of new opportunities.
This session provided participants with practical insights into how this asset class addresses economic challenges and can become a strategic component of investment portfolios.
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