Direct lending is a private debt investment strategy where investors provide loans directly to private companies without involving traditional lenders like banks. This method allows investors to earn higher yields than public market bonds. In real estate direct lending, investors can lend money to real estate projects, such as commercial or residential properties, bypassing banks. For example, an investor can offer funding directly to a developer for the construction of a new condominium building. This type of investment can provide a steady income stream and potentially high returns. In small and medium business direct lending, investors can provide loans directly to private companies with the aim of financing their business operations. For instance, an investor can lend money to a restaurant owner to purchase inventory and renovate their establishment. Direct lending in small and medium businesses is a crucial source of funding as these companies often struggle to secure financing from traditional lenders.