Over the past decade, private lending has surged in popularity, especially in the space of first mortgage secured construction loans.
As investors search for alternatives to low-yield term deposits and volatile equities, many have turned to private credit funds.
These funds often promise attractive fixed returns, secured by tangible property assets, supported by the growing demand for housing and infrastructure.
But while the concept is sound, not all private lending options are created equal.
Most lenders in the market offer investors exposure via pooled funds—a diversified basket of loans across multiple projects.
While this may provide a sense of risk protection through diversification, it also distances the investor from what their money is actually funding.
In these structures, investor capital can be allocated across dozens (or even hundreds) of loans, and individual project performance is blended together.
The result? You can lose visibility and control.
