Fynsa
In the current U.S. real estate cycle, financing has evolved from a purely operational component into a key driver of value creation. The ability to transition from flexible equity to efficient institutional debt is key to capturing value.
Over the last decade, private debt has experienced sustained growth and significant structural transformation. What was previously characterized by flexible solutions, less supervision, and bilateral relationships now operates under much more demanding standards in terms of information, governance, and regulatory control.
Subordinated debt appears to be a middle ground: it costs more in coupons than a traditional bond, yes, but it buys financial flexibility and, in many cases, improves capital readings due to its subordination, long term, and certain contractual options.
Today's market is more mature and demanding. Institutions must not only lend, but also understand the debtor, assess their financial resilience and anticipate their ability to repay. Easy credit is a thing of the past; smart credit is the new standard.
Although few companies use it, factoring in Mexico is projected to double in size by 2033, driven by fintechs and the demand for working capital.
With a credit recovery led by the corporate segment, the boost to consumption and MSEs has come hand in hand with digital transformation. Platforms such as Yape and app banking have made it possible to expand access to credit, especially in sectors traditionally excluded from the financial system.
All indications are that private debt will continue to gain space in Chile. Macroeconomic uncertainty, combined with a structural need for more housing, creates a favorable environment for these instruments to become institutionalized.
Despite the difficulties in the market, both the public and private sectors are promoting measures to reactivate the industry and generate new investment opportunities.
The need for alternative financing has driven the growth of private debt, transforming access to capital and fostering economic development and innovation in various sectors.
This financing solution not only helps buyers in a complex credit environment, but also drives more responsible construction and procurement practices.
