In the last period, the construction and real estate sector has had difficulties in accessing bank financing, due to the fact that banks have been more restrictive with this sector post Covid.This is due to the fact that banks have been more restrictive with this sector post Covid, despite the fact that, according to the last survey published by the Central Bank, the strictest credit conditions for construction companies decreased by 10%, and for real estate companies by 28%.

Although restrictions have begun to improve, the sector has been looking for alternatives in non-bank players for some time now and, within these, the Private Debt business has shown a particular attraction. According to the latest report of the Chilean Association of Investment Fund Administrators (Acafi), bullet financing (without amortization) is the preferred type, followed by structured credits.

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

As of March 2023, the funds with this type of financing had assets of 155.6 million UF.

Claudia Jamett

Private Debt Analyst Fynsa AGF