Private capital steps into the institutional arena

The property finance market of 2025 no longer belongs exclusively to institutions.

Across London, the South East, and major European cities, privately held investment groups, family offices, and high-net-worth (HNW) individuals are structuring deals that would once have required corporate sponsorship.

The driver is not just wealth, it’s strategy. Banks remain conservative, enforcing lower loan-to-cost ratios, higher liquidity thresholds, and extended decision timelines. Yet well-prepared private clients are bypassing these bottlenecks, deploying personal balance sheets and creative structures to unlock scale.

In this new landscape, capital sophistication has replaced corporate infrastructure. Ultra-high-net-worth borrowers who can combine transparency, collateral flexibility, and access to specialist lenders are now competing head-on with traditional developers, and winning.

From liquidity to leverage: the shift in private client strategy

Historically, even wealthy individuals preferred to fund developments in cash or through joint ventures with institutional partners. The trade-off was comfort for control.

In 2025, that dynamic has changed. Rising asset values, diversified wealth holdings, and the maturity of private credit markets mean liquidity can now be leveraged without relinquishing control. Borrowers can fund £50 million to £150 million projects entirely through structured private debt — without corporate guarantees or external equity.

This approach depends on one core principle: proving that risk can be mitigated by collateral sophistication rather than corporate scale. The more coherent and documented the borrower’s asset ecosystem, the more confident lenders become.

Those seeking a deeper overview of current lender expectations should refer to Development Finance in 2025: What’s Changed and What Lenders Want Now, which explores how underwriting has evolved post-2023.

Cross-collateralisation: turning asset diversity into leverage

At the heart of most £50M+ private finance structures lies cross-collateralisation — the strategic use of multiple assets to support one large facility.

Rather than treating each property as an isolated lending case, private investors increasingly pool their holdings into composite security packages that deliver stronger overall coverage.

For example, a borrower may combine a £25 million investment property, an unencumbered residence, and a securities-backed portfolio to secure a £50 million facility for development. The assets act in concert, providing flexibility and lender comfort that no single property could achieve alone.

This technique allows borrowers to access leverage on terms comparable to institutional developers — but with greater autonomy. It also enables them to negotiate bespoke conditions such as capitalised interest periods or flexible drawdowns tied to planning milestones.

For a practical guide to structuring this type of arrangement, see Cross-Collateral Property Finance in 2025: Leveraging Multiple Assets to Secure Large Loans.

Private credit: the modern bridge between ambition and execution

Private credit has become the backbone of sophisticated property lending in 2025.

Once viewed as expensive, it’s now mainstream, particularly for borrowers seeking fast, discreet, and flexible finance on complex projects.

These lenders, often backed by institutional investors or family offices themselves, prioritise commercial logic over rigid box-ticking. They assess the project, sponsor, and exit plan as a complete ecosystem. Where banks see red tape, private credit sees opportunity.

A typical private credit facility might fund 70% of total project cost, structured as a senior or mezzanine loan with tailored repayment triggers. Terms are commercially priced, often 100 to 150 basis points above prime bank rates — but timelines are measured in weeks, not quarters.

When used intelligently, private credit bridges liquidity gaps without dilution, allowing UHNW borrowers to retain ownership while scaling projects.

To explore the evolution of this sector, read When Traditional Lenders Step Back: The Rise of Private Debt Funds in Property Finance.

Joint ventures: from financial partnerships to strategic alliances

Not every investor wants to go alone — and in large-scale transactions, collaboration can unlock both credibility and efficiency.

Family offices are increasingly forming joint ventures with experienced developers. Unlike historic arrangements where one party supplied cash and the other expertise, modern JVs are symbiotic. Each party brings something the other lacks — the developer provides delivery capability, while the investor contributes balance sheet depth and lender access.

These alliances work best when both sides share transparency. Lenders are far more comfortable funding a £100 million JV where governance, documentation, and exit plans are clearly defined.

The most successful models in 2025 use preferred-equity structures and staged profit waterfalls, mirroring institutional-grade deals while preserving private flexibility.

For more on this evolving landscape, see How Family Offices Are Approaching Property Debt in 2025: From Direct Lending to Strategic Partnerships.

Financing without corporate guarantees

One of the most significant changes in the market is how lenders now view personal covenant.

A decade ago, most institutions required corporate guarantees or extensive trading histories to fund eight- or nine-figure projects. In 2025, the focus has shifted to demonstrable wealth, governance, and exit planning.

Private borrowers without corporate entities can still achieve leverage of 65–75% loan-to-cost by providing a consolidated financial narrative:

• Verified global asset and liability statements
• Liquidity schedules and banking references
• Transparent ownership of trusts or holding structures

This emphasis on clarity rather than corporate backing reflects the maturity of private lending. The borrower’s story, structure, and stewardship now carry as much weight as their balance sheet.

For private clients exploring offshore or trust-based ownership, Trusts and Property Finance in 2025 outlines how lenders approach governance and compliance in cross-border deals.

Syndication: scaling beyond £100 million

For deals above £100 million, even private credit may not provide the full appetite.

That’s where syndication — once a tool reserved for corporate banking — now enters private finance.

Through structured participation agreements, a lead arranger can unite multiple boutique lenders, each contributing £10–£50 million, under one coordinated facility.

The result is a single transaction with institutional scale but private agility.

This strategy is increasingly popular for large redevelopments and repositioning projects where risk is front-loaded. It also suits family offices managing multiple jurisdictions — offering control through one borrower entity while spreading lender exposure.

For a detailed look at how syndication functions in private lending, see Syndicated Lending for Private Borrowers: When One Lender Isn’t Enough.

Liquidity as strategy: why control now trumps cost

Perhaps the defining mindset among private sponsors in 2025 is the willingness to prioritise control over cost.
While institutions chase marginal basis points, private investors value decisiveness and confidentiality.

They understand that being first to transact often outweighs small rate differentials. A facility secured in six weeks at 7.5% may outperform a 6.5% deal that takes six months to close.

Liquidity, when used strategically, becomes the lever for opportunity — not merely a reflection of wealth.

Borrowers who master this dynamic often integrate Securities-Backed Lending (SBL) into their capital stack, blending traditional property leverage with portfolio-based credit.

For guidance on this advanced approach, see Property Finance with Securities-Backed Lending: Unlocking Liquidity Without Selling Investments.

How Willow Can Help

At Willow Private Finance, we work with high-net-worth individuals, family offices, and private investors to structure finance at scale — from £10 million bridging facilities to £150 million+ development loans.

Our role is to convert complexity into clarity. We coordinate multi-lender facilities, navigate cross-border compliance, and structure bespoke solutions that preserve flexibility while maximising leverage.

Through our established relationships with private banks, family office investors, and institutional credit funds, we secure facilities tailored to the borrower — not the product.

Clients choose Willow because:

• We deliver institutional-grade structuring with private client discretion.
• We access exclusive funding lines that rarely appear in the open market.
• We negotiate terms, covenants, and exits aligned to personal wealth strategies.
• Every transaction is managed directly by senior partners, ensuring accountability and speed.

Whether you’re funding a landmark development, consolidating high-value debt, or raising liquidity against prime assets, our expertise ensures your strategy is executed with precision, and discretion.

Frequently Asked Questions

1. How can private investors fund £50M+ projects without corporate backing?
By combining personal covenant, verified assets, and structured facilities such as private credit or cross-collateralised lending, UHNW borrowers can achieve leverage comparable to institutions.

2. Are lenders open to borrowers using offshore or trust structures?
Yes, provided ownership and liquidity are transparent. Lenders now focus on documentation integrity and clear governance rather than domicile.

3. Does private credit always cost more?
Typically, yes — but flexibility and certainty of execution often deliver better net outcomes. Many borrowers treat it as transitional capital before refinancing with lower-cost debt.

4. Can joint ventures still access private credit funding?
Absolutely. Many credit funds welcome JV-backed deals where delivery risk is managed by an experienced partner and financial backing is proven.



5. What’s the main difference between bank lending and private structures?
Speed and negotiation. Private finance operates on relationships and logic, not rigid policy. It values strong exits and credible sponsors over corporate history.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our senior mortgage and development finance specialists.
We’ll help you find the smartest way forward — whatever rates do next.