Jack Creedon, co-head of the firm’s real estate investments and transactions group, spoke with Private Equity Real Estate Credit (PERE) about a rise in warehouse and repo lending.
“A lot of the increase in activity we are seeing has to do with the current regulatory environment,” Jack said. “Banks are concerned about their exposure to real estate but lending through warehouse and repo lines is more indirect, which leads to a lower capital charge as opposed to direct lending.”
Jack expects this trend to amplify in the coming months and years. “What we are hearing from our clients is that this is a secular change and that a larger share of the market going forward is being plugged by private credit lenders. That will continue beyond the recovery.”
Attorneys
Stay Up To Date with Ropes & Gray
Ropes & Gray attorneys provide timely analysis on legal developments, court decisions and changes in legislation and regulations.
Stay in the loop with all things Ropes & Gray, and find out more about our people, culture, initiatives and everything that’s happening.
We regularly notify our clients and contacts of significant legal developments, news, webinars and teleconferences that affect their industries.