Private Credit and Multifamily: A Strategic Allocation for Today’s Market Cycle

Over the past 12–18 months, we’ve seen a dramatic shift in the real estate investment landscape - marked by tighter credit, compressed development pipelines, and widespread dislocation in capital markets. For many, this has created uncertainty. For Egg Capital and our investors, it has created opportunity.

We believe we are entering one of the most attractive entry points in over a decade for private credit and multifamily real estate - two of the most resilient, cash-flowing strategies in private markets.

1. Private Credit: A Rare Window Has Opened

Over $1.5 trillion in commercial real estate debt is coming due through 2026. At the same time, traditional lenders—particularly banks—are retreating, leaving a $300B+ capital gap in the U.S. alone. This supply/demand imbalance is creating exceptional opportunities for private lenders to step in on lender-friendly terms.

We’re seeing:

• Higher yields (9–14%+) on collateralized loans to high-quality sponsors

• Lower risk via lower LTVs (often 50–60%) and tighter covenants

• Structurally better vintages, as loans today are underwritten to reset valuations—not the inflated pricing of 2021–2022

Unlike the public markets, private credit is not marked to market. That means investors benefit from stable income, real asset backing, and built-in downside protection, especially when investing with seasoned lenders who understand how to structure through volatility.

At Egg Capital, we co-invest alongside our LPs in these private credit deals—ensuring full alignment and targeting strong risk-adjusted returns in a dislocated lending environment.

2. Multifamily Real Estate: Supply Is Collapsing Just as Demand Rebounds

Headlines in 2023 focused on a “wave of multifamily deliveries.” But the reality is, new development starts fell 60–80% across most U.S. markets last year due to rising construction costs, tighter financing, and regulatory delays. That collapse in the development pipeline will create a massive supply shortage in 12–24 months—just as interest rates are stabilizing and demand for rental housing rebounds.

Here’s what we’re seeing:

• Strong rent growth in markets with favorable job and population trends

• Institutional sponsors returning to the market, buying quality deals at discounts

• Long-term fundamentals supported by low household formation, high mortgage rates, and renter preference shifts

Multifamily remains one of the only strategies that combines passive income, inflation protection, depreciation benefits, and long-term appreciation. And in today’s market, we’re underwriting deals to 14–25% target returns, often with value-add upside or development at a discount to replacement cost.

3. A Better Environment for Disciplined Investors

In 2021 and early 2022, capital was abundant and pricing was frothy. Nearly anyone could raise money and deploy into deals—whether they had the experience or not.

Today is different.

• Underwriting standards have tightened

• Investors are asking smarter questions

• Capital flows are more selective

This shift plays to our advantage. At Egg Capital, we leverage over $1.3 billion in institutional real estate experience to underwrite every deal with a focus on downside protection, sponsor credibility, and real alignment. We’re not chasing trends—we’re picking our spots.

In fact, we’ve personally invested over six figures of our own capital into the very strategies we’re now offering to our investor base.

4. Structural Shifts Are Creating a Long-Term Advantage for Private Investors

What’s unfolding today isn’t just a short-term dislocation—it’s a structural shift in how real estate is capitalized, financed, and owned.

Several long-term forces are now aligning in favor of private capital and direct investors:

• Banks are shrinking their real estate exposure due to regulatory pressure and internal balance sheet risk, creating a permanent pullback in traditional lending capacity.

• Institutional capital is repricing risk and becoming more selective, which opens the door for nimble investors to step in where larger firms can’t move quickly.

• Developers are building less, not because demand is falling, but because capital is harder to find and construction economics remain difficult.

• High-earning individuals are demanding more control, transparency, and tax efficiency than traditional public markets or retirement accounts can offer.

This isn't just a moment to act—it’s a moment to reposition.

For investors who want to generate stable income, access high-quality real estate, and align with the structural forces reshaping the market, the time to move isn’t next year or “when rates drop.” It’s now—while others are still waiting on the sidelines.

Final Thoughts: Why We Built Egg Capital

After leading institutional real estate deals for years and investing personally across dozens of private deals, we built Egg Capital to give high-earning professionals like you access to the same rigor, relationships, and risk management previously only available to pensions, endowments, and billion-dollar funds.

We believe in transparency, alignment, and disciplined execution. We invest alongside you. And we only bring forward opportunities we believe in enough to put our own capital behind.

Now is the time to take advantage of a market dislocation that won’t last forever.

Want access to our upcoming private credit and multifamily offerings?

Join the Egg Capital Investor Network to review current deals, receive market updates, and schedule a call with our team.