Executive Summary

We believe the European Commercial Real Estate (CRE) debt market currently offers an opportunity for non-traditional lenders (Alternative Lenders) to enter or expand their presence. Historically, as seen in previous credit cycles, what we believe are the most promising investment opportunities tend to emerge during challenging market conditions, because well-capitalized lenders have the power to negotiate more favorable terms. Reduced competition, especially for development loans and loans tied to value-add properties, provides Alternative Lenders with the opportunity to implement high yield strategies with improving downside protection. Several market characteristics are shaping the current landscape, and in our opinion are expected to continue creating opportunities for Alternative Lenders in the future.