Fairbridge Asset Management (“Fairbridge”), a private credit firm specializing in short-term, high-yield mortgage financing for real estate investors and developers across the U.S., today announced it delivered strong origination momentum and sustained borrower demand during the first quarter of 2026. The firm’s recent performance underscores a continued demand for private real estate credit solutions as the market enters a more balanced phase defined by limited new supply, repricing and a growing emphasis on income growth.
Fairbridge’s Q1 activity was characterized by considered underwriting and selectivity for opportunities involving projects that it views as well-located with strong upside potential, supported by strong sponsorship and conservative capital structures. While transaction volume across the broader market remains uneven, borrower interest in private real estate credit has remained resilient, driven by the need for efficient dealmaking and flexible capital solutions. The firm continues to see favorable conditions in supply-constrained markets across the Midwest, Mid-Atlantic and Northeast, in contrast with some parts of the Sun Belt that continue to absorb deliveries from 2024 and 2025.
“As traditional bank lenders remain on the sidelines or operate with significantly reduced risk tolerance, we continue to see sustained demand from borrowers seeking reliable capital partners,” said Brian T. Walter, Co‑Founder and Managing Partner of Fairbridge Asset Management. “Throughout the first quarter of 2026, our focus remained on capital preservation and downside protection, prioritizing deals that enabled us to maintain loan-to-value parameters and structural protections. Banks continue to retrench amid regulatory pressure, geopolitical uncertainty and competition from private credit, creating opportunities for experienced non-bank lenders to fill the capital void. We will continue to evolve our approach, which has served us well across market cycles, against the backdrop of the alternative lending environment in the U.S. while evaluating each transaction on an idiosyncratic basis.”
As it relates to opportunities across asset classes, Fairbridge believes that senior housing is supported by powerful demographic tailwinds and limited new supply. Approximately 10,000 baby boomers are turning 80 every day in 2026, and the population aged 80 and over is expected to increase by nearly 50% between 2025 and 2030, according to Pew Research Center, creating a compelling supply-demand imbalance for the sector. Industrial and select retail assets also remain bright spots as tariffs and reshoring initiatives continue to reshape domestic manufacturing, logistics and distribution patterns, creating evolving capital needs for sponsors operating in these sectors.
Fairbridge observed increased competition for high-quality opportunities in the first quarter, reinforcing the importance of thorough screening and underwriting standards. Transaction timelines also remain compressed for borrowers, further distinguishing private lenders who are able to move decisively while bringing an institutional approach to credit discipline. Moreover, the firm believes that recent real estate repricing has been driven primarily by cap-rate expansion rather than underlying property fundamentals, with net operating income growth expected to play a more meaningful role in driving returns going forward.
John C. Lettera, Partner and Co‑Founder of Fairbridge Asset Management, added, “Q1 further reinforced the value of an institutional approach in a fragmented private credit market. Our ability to evaluate opportunities efficiently, apply a consistent credit framework and remain patient in our capital deployment allows us to navigate periods of uncertainty without compromising our underwriting standards. We remain optimistic about the opportunity set for real estate private credit relative to the current environment, which continues to support both deal flow and pricing power for disciplined non-bank lenders.”
Looking ahead to the rest of the year, Fairbridge expects borrower demand for private credit to remain elevated as refinancing challenges persist and bank lending activity continues to normalize at a measured pace. The firm believes these dynamics will continue to favor experienced alternative lenders with established sourcing networks, disciplined investment processes and the ability to structure solutions across a wide range of project scenarios.
Fairbridge has originated approximately $1.5 billion in loans since its inception.
About Fairbridge Asset Management
Fairbridge Asset Management brings together a team of seasoned professionals with more than a century of combined expertise spanning finance, lending, law, and asset management — a depth and breadth of experience that distinguishes the firm within the private credit landscape. Specializing in the origination, underwriting, and active management of a portfolio of tailored, structurally complex real estate bridge loans, Fairbridge delivers decisive, flexible, and innovative capital solutions for real estate professionals seeking to capitalize on time-sensitive and opportunistic transactions. As a portfolio lender, Fairbridge oversees its investment vehicles using a disciplined and structured approach designed to provide the sophistication that today’s dynamic and competitive market demands. For additional information, please visit www.fairbridgellc.com.
DISCLAIMERS:
This material is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment advisory services. Statements herein may be forward-looking and are based on current expectations; actual results and outcomes may differ materially. There is no assurance that any investment objective will be achieved of that any investment strategy will be successful. Past performance, including referenced origination volumes, is not indicative of future results, and there is no assurance similar outcomes will be achieved in future periods. Market views and commentary are expressed as of the date hereof, are subject to change, and should not be relied upon as investment, legal, or tax advice. Information from third-party sources is believed to be reliable, but Fairbridge has not independently verified such information and does not guarantee its accuracy. All investments involve risks, including market volatility, illiquidity, and loss of principal. References to pipeline, deal flow, or borrower demand do not represent committed transactions and may not result in completed investments. References to investment processes, discipline, or experience reflect the Company’s general investment approach and should not be construed as guarantees of performance or risk mitigation. Certain investment vehicles referenced may be closed to new investors or available only to eligible investors meeting applicable suitability or qualification requirements. Fairbridge Asset Management LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.
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