In recent months, the construction and real estate sectors have struggled to access bank financingbecause banks have been more restrictive toward this sector in the post-COVID era, even though, according to the latest survey published by the Central Bank, stricter credit conditions for construction companies decreased by 10% and for real estate firms by 28%.

Although restrictions have begun to ease, the sector has been seeking alternatives among non-bank players for some time, and among these, the private debt business has proven particularly attractive. Bullet financing (with no amortization) is the preferred option, according to the latest report from the Chilean Association of Investment Fund Managers (Acafi), followed by structured loans.

According to the same Acafi report, private financing has increased from 13% in 2022 to 25% in 2023.

As of March 2023, funds that receive this type of financing had total assets of 155.6 million UF.

Claudia Jamett

Private Debt Analyst, Fynsa AGF