Whilst there is so much of this Covid-19 pandemic that we have never seen before, what we have seen before is how markets react when economic conditions change suddenly. And how opportunities are created. Right now deals are on the brink. Traditional lenders are getting cold feet. And low valuations are scuttling transactions.
What happens when traditional lenders pull back? It’s happened before. Enter the privates to the rescue. Whether it’s because of the creation of significant wealth over the past 25 years through property or intergenerational wealth, we now have a whole sector made up of private lenders, either operating independently or through family offices or established businesses.
Many of our firm’s property or commercial clients have now become lenders and in recent years much of our work has been looking after those clients who would now rather lend than build or produce or sell or whatever it was they were doing before. And it works for everyone. Private lenders are agile. They are not constrained by policy, can set their own rules, and they make their own decisions. And with our help they can assess risk, and move fast. It’s amazing to see how the business community adapts so quickly. And it serves a useful purpose.
Though of course right now what is most important is that people stay safe and well and that we look after each other.