The Private Debt market is experiencing new momentum, helped by the explosion of new projects, declining interest rates and optimism in the economic and political outlook. As the banking sector imposes restrictions affecting both companies and individuals, Private Debt is perceived as a good alternative to meet unmet needs.

According to the latest data provided by Iconstruye, during October, 23 new projects were incorporated with respect to the previous month.. Of these, 48% are concentrated in the Metropolitan region and the other 52% in the regions of Atacama, Coquimbo, Maule, Ñuble, Biobío and Los Lagos.

Of the new projects, 39% correspond to infrastructure, 35% to apartment buildings, 22% to houses, and 4% to commercial premises. But regardless of their use, this increase in the number of new projects is very good news for the construction industry.

This trend towards the consolidation of revenues from new works and the sustained fall in interest rates has created an environment conducive to the growth of the Private Debt market in our country. the growth of the Private Debt market in our country.

Based on the latest data provided by ACAFI, as of the third quarter of 2023, there were 174 Private Debt investment funds in Chile, managing US$6.8 billion in assets, which meant a 9% growth compared to the close of 2022, where this amount was US$6.2 billion. In turn, it represents an increase of 138% compared to the close of 2018, when US$2.6 billion were managed.

Claudia Jamett

Private Debt Analyst Fynsa AGF