Private Lending Trends: What to Expect in 2025

• Institutional capital continues displacing local hard money shops.
• Hybrid lending models—with equity components or profit shares—are gaining traction.
• AI-assisted underwriting will streamline approvals without replacing human oversight.
• Regulatory compliance is now table stakes: expect increased scrutiny from state and federal agencies.
• Rate sensitivity is declining—borrowers value certainty and execution speed more than marginal APR savings.