Our Strategy in a Shifting Market
Hybrid Debt Fund I is built to capitalize on a historic opportunity in commercial real estate lending. As banks pull back and borrowers demand speed and flexibility, we step into a growing gap with institutional discipline and private capital.
A Market Too Big to Ignore
As of early 2025, over $5.1 trillion in commercial and multifamily mortgage debt is outstanding in the U.S. Annual origination volume last year reached $901 billion—and borrowers still need fast, flexible capital.
Total CRE Debt
$5 trillion outstanding as of 2025 and growing
Annual Origination
$901 Billion in new loans originated in 2024
Private Lending Share
Private credit and debt funds now fund 12–14% of the market—and growing
Where We Fit In
The traditional lending stack is under pressure. Banks are tightening. Agencies are slow. Life companies are conservative. CMBS won't touch construction. Hybrid Debt Fund I fills the funding gap for $5–15M loans—fast, flexible, and secure.
2024 Market Share by Lender Type
Banks & Thrifts
38–40%
GSE (Fannie/Freddie)
21–23%
Life Insurance Companies
15–16%
CMBS
9–10%
Debt Funds / Private Credit
12–14%
Other (REITs, Pensions)
2–3%
How We Compete
Banks are retrenching and often refer us deals they won’t fund. Agency lenders are great takeout partners but rarely fund transitional loans.
Life companies are highly conservative. CMBS lenders won’t touch construction or sub-$20M loans. That’s where we shine—funding $5M to $15M loans with underwriting discipline and speed.
Debt funds and private credit are growing—but few compete in our target segment with our blended structure.
A $1.67 Trillion Market Poised to Nearly Double
Private credit has emerged as one of the fastest-growing sectors in finance, with global assets projected to grow from $1.67 trillion in 2025 to over $2.9 trillion by 2030. Institutional investors, family offices, and accredited individuals are increasingly seeking alternative income sources that offer higher yields, lower volatility, and collateral protection.
Bank Pullback
Traditional lenders are scaling back. Borrowers still need funding—creating opportunity for private capital.
Speed & Flexibility
Private credit can move faster and structure deals with more creativity than institutional competitors.
Investor Demand
Yield-starved investors are reallocating from fixed income to private strategies offering alpha with control.
What Makes Hybrid Different
Unlike most funds that simply lend, Hybrid Debt Fund offers a rare combination: downside protection through real estate-backed loans, and the upside potential of equity-like returns. Our blended structure, niche focus, and takeout strategy set us apart.
Downside Protected
All loans are secured by hard assets, underwritten with discipline, and structured with clear exits.
Equity-Like Upside
We go beyond coupon payments—our returns are designed to capture alpha through targeted performance.
Targeted Niche
We operate in the underserved $5M–$15M loan segment—where institutional lenders can’t or won’t compete.