Shadow Lenders Are Pushing Into Risky Real Estate Deals

Seven years after the financial crisis, private funds in the U.S. are extending their push into traditional banking.

So-called shadow lenders -- asset managers that operate outside the banking industry’s regulatory oversight -- have been making an increasing number of leveraged loans to midsize businesses. Now their involvement is growing in commercial real estate, a market that scorched traditional lenders when it blew up after the 2008 financial crisis.