Banks are pulling back from complex or transitional real estate deals as tighter regulatory balance sheet constraints make financing harder to secure, opening the door wider for private credit. That shift, according to Glenn Grimaldi, CEO of Naftali Credit Partners, is reshaping how borrowers approach capital and execution strategies in 2026.
Grimaldi, who recently left his position leading a $20 billion U.S. portfolio at HSBC and overseeing more than $100 billion in transactions to join Naftali Credit Partners, says private credit can do what banks currently cannot.
"Private credit doesn't have the same limitations," he said. "It can look at the full picture and structure capital in ways that align with the asset and the business plan."
With many borrowers navigating refinancing challenges, speed and reliability have become the new priorities.
"In this environment, borrowers are really focused on reliability," Grimaldi told GlobeSt.com. "Being able to move quickly and follow through on what you commit to is just as important as pricing. That's where private credit has stepped in to fill the gap."
Grimaldi said that for the remainder of 2026, the lending market remains in an adjustment phase with a wave of debt coming due.
"Not all of it will be easily refinanced through traditional channels," he said. "That's continuing to create opportunities for private credit, particularly for well-capitalized platforms that can be flexible and move quickly."
Even as activity builds, he emphasized that discipline is key.
"The focus has to remain on strong assets, experienced sponsors, and well-structured capital," according to Grimaldi. "Lenders that stay selective and consistent in their approach are going to be best positioned through the rest of the cycle."
He sees private equity and credit working together to revive stalled deals, particularly in multifamily, mixed-use, and transitional projects. And deals don't necessarily need to be abandoned — but restructured with the right capital.
"Private credit can play a key role by stepping in with flexible solutions that bridge gaps in the capital stack, whether that's supporting a transition, refinancing existing debt, or helping a project reach stabilization," he said.
Understanding assets from the ground up has been central to Naftali's approach to each transaction. "With that perspective, you can structure capital in a way that supports execution and positions the project for long-term success," Grimaldi said.
Grimaldi noted that his move to private credit was driven by the ability to be more solutions-oriented, as banks have begun to pump the brakes.
Over the past year, Naftali Credit Partners has secured more than $1.7 billion in financing, including notable deals such as a $62 million loan for Nine Hollywood in South Florida and a $125 million financing package for 70-28 Grand Central Parkway earlier this year. As its credit arm expands into new markets, Grimaldi said the focus remains on pairing capital with strategy to achieve long-term stability across an evolving lending landscape.
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