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Heading into the early months of 2024, real estate debt presents an intriguing mix of opportunity and challenges. Andrew Smith, head of real estate debt at Kayne Anderson, explains why.

Conditions in 2024 are primed for junior debt strategies to take off, says Park Square’s Robin Doumar.

Experience and consistency of approach are key amid a challenging macroeconomic environment, say TPG Twin Brook Capital Partners’ Drew Guyette and Kim Trick.

With demand for debt rising, returns increasing and a big market growth opportunity in Europe, the growth debt strategy appears to have a bright future. David Bateman and Johan Kampe, co-managing partners at Claret Capital Partners, explore the key trends.

High barriers to entry and a strong share of growing markets are among the borrower characteristics that instil confidence for lenders, according to Paul Johnson and Andrew Cleland-Bogle of Bridgepoint Credit.

Deal activity has slowed and firms are focused on preserving value in their portfolios. It’s time to double down on the right framework and repeatable processes, according to Marc Preiser and Mikko Iso-Kulmala at Fidelity International.

Outside China, there are solid grounds for optimism in Asia-Pacific markets, say Tor Investment Management’s Patrik Edsparr and Chris Mikosh.

Allocations to private credit backed by real estate are growing in Australia, especially for commercial property, say MaxCap’s Wayne Lasky and Bruce Wan.

Strong returns are achievable in Australia for fund managers with good track records, in-depth local knowledge and deep relationships

Recovery rates may be lower, but CLOs will provide plenty of opportunity through the credit cycle, according to Anthony Breaks, head of investments, securitised products and asset-based finance, Schroders Capital.