A different kind of private credit (and why it matters now)

A short overview of what makes Fundrise’s private credit investments entirely different from the types of loans making news headlines recently.

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June 14, 2026 6:12pm EDT

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Private Credit: What you should know

Private credit is one of the most talked-about corners of investing right now, and not always for the right reasons.

Recent headlines have raised fair questions about funds that lent to richly valued software companies and consumer credit pools now facing real repayment risk. When the assets behind your loans are hard to value and easy to disrupt, that's a genuine concern.

But there's a version of private credit built on something far more straightforward: real property, real equity, and real income.

Fundrise's private credit strategy focuses on lending against physical real estate, primarily residential properties like apartment buildings and build-to-rent communities, at 70-85% of either our best estimate of true value or actual project cost, whichever is lower. That means there's typically 15-30% of real cash equity behind every loan, in the first-loss position. If a borrower can't repay, we can take over a tangible asset at a significant discount to what we believe it's worth.

In exchange for lending that capital at a discounted basis to an asset's true value, investors earn a fixed return. Currently, the Fundrise Income Fund pays an 8%^¹ annualized dividend distribution, paid quarterly.

Two things make this particularly compelling right now:

1.	Real estate values remain below long-term trends, which means we believe we're lending against assets at attractive cost bases. If values recover over the next several years, the effective loan-to-value on many of our positions could drop to 50-65%, further strengthening the risk-adjusted return.
2.	As broader private credit concerns push institutional capital to the sidelines, disciplined lenders focused on high-quality collateral are finding better deal flow on better terms.

If you're looking for income-generating investments backed by tangible assets rather than speculative valuations, our private credit fund may be worth a closer look.

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1. As of March 2026. The current month’s distribution is annualized and divided by the prior month’s net asset value per share.

Disclosure: An investor in the Fundrise Income Real Estate Fund should consider the investment objectives, risks, charges, and expenses carefully before investing. The Fund’s prospectus contains this and other information and may be obtained here. Investors should read the prospectus carefully before investing.

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A different kind of private credit (and why it matters now)

A short overview of what makes Fundrise’s private credit investments entirely different from the types of loans making news headlines recently.

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