Private Credit Is Coming for the Residential Mortgage Market

Private credit firms got their start by focusing on lending to middle-market businesses. Next, they swooped in for large buyouts. Now, these lenders are eyeing the $50 trillion housing market, as home buyers clamor for non-traditional loans in light of high rates.

Private lenders are looking for ways to expand their reach into other parts of the economy, as the traditional direct lending market has become crowded. One path is asset-based finance, which can encompass everything from auto loans and credit card debt to mortgages.

The residential market is ripe for the taking, as alternative asset managers can finance home ...