Know What's Happening in Banking

Beyond Rivalry: How Banks and Alt Lenders Are Swapping Competition for Cooperation

In this episode, Stuart Watson talks with Deutsche Fanbrief Bank MDs Duncan Pearson and Charles Balch about the bank’s “originate and cooperate” strategy, which pairs its balance‑sheet senior lending with flexible capital from alternative lenders to meet complex real‑estate financing needs. They explain how tighter regulation and lower loan‑to‑value limits have pushed banks toward collaboration, allowing them to offer larger, longer‑term, or higher‑leverage structures that would otherwise be out of reach. The guests highlight the benefits for borrowers—more sustainable capital structures and lower weighted costs—as well as for banks and non‑bank partners, who each earn fees and diversify risk. Finally, they discuss how this cooperative model supports market stability and positions the bank for the next property cycle.