Volatility in the regional banking sector could mean a significant shift in the composition of the commercial real estate lending market going forward, with more debt funds and alternative lenders taking centre stage as traditional sources of capital step back. Diana Brummer, Real Estate co-chair in New York, notes the change is already being seen as established debt-focused mangers are raising fresh pools of capital and new managers are looking in the space. The sector could also see more separately managed accounts focused on real estate lending, she adds. "We are seeing a big increase in fundraising by private investment funds that focus on lending, and this is definitely more than a modest uptick," Brummer says to Private Debt Investor. "The sources are planning to fill the void that has been left by some of the banking issues and they see an opportunity to put out capital when banks are not."