With a wave of corporate loans coming due and banks maintaining tight lending standards, Canadian companies can be left scrambling for capital. Increasingly, alternative lenders like private credit firms are stepping in where traditional banks won’t. In Canada, Third Eye Capital is one of the country’s premier alternative capital providers, with CEO Arif Bhalwani overseeing over $5 billion in investments in its 20 years of operation.
“When we evaluate companies, we look beyond the numbers on paper,” says Bhalwani. “Our approach is about understanding a company’s challenges, its potential, and finding a financing package that makes sense when banks don’t want to bother.”
Bhalwani knows the struggles businesses are facing firsthand. By his mid-20s, he had co-founded, managed, and sold eight businesses, often relying on personal networks and past profits because banks wouldn’t back him. Now, at the helm of Third Eye Capital, he’s using that same ingenuity to help companies that banks deem “unfinanceable.”
As Canadian banks continue to show reticence to lend, while at the same time calling in their many pandemic-era corporate loans, private credit firms are filling a massive gap in the lending market. Unlike in the U.S., where alternative lenders have already carved out a dominant position, Canadian banks still control 75% of lending. But that’s changing fast.
Third Eye Capital specializes in high-risk, high-reward lending. Bhalwani and his team don’t just hand out cash; they embed themselves in a business, working alongside leadership to solve operational challenges. The firm provides tailored financing solutions that account for industry-specific needs, ensuring that capital is structured in a way that aligns with long-term growth rather than short-term fixes.
“We’re not just financing companies—we’re partnering with them to create new paths to success,” Bhalwani explains. That hands-on approach makes private lenders like Third Eye Capital an attractive option for investors looking for strong, collateral-backed returns in a volatile economy.
A Market in Transition
This isn’t just a short-term shift. Private credit markets are booming globally, with assets projected to hit $3.5 trillion by 2028. In Canada, firms like Third Eye Capital are proving that flexible, fast-moving capital can be a game-changer, both for businesses and for investors looking to protect their net worth as traditional markets falter.
The rise of private credit also reflects a broader shift in the financial industry. Institutional investors, pension funds, and high-net-worth individuals are increasingly allocating capital to private credit as they seek stability and higher yields in a rising-rate environment. This influx of investment is allowing firms like Third Eye Capital to scale their operations and support a wider range of businesses.
Bhalwani sees even more room for growth. “The U.S. has already unlocked the potential of alternative lenders,” he says. “Canada is just beginning, and we want Third Eye Capital to help lead the way.”
For businesses facing financial distress or transition, this alternative financing model provides not only capital but strategic guidance. Private lenders like Bhalwani bring industry expertise, operational restructuring experience, and a commitment to long-term success that traditional banks often lack. As more corporate loans come due and companies find themselves needing non-traditional funding, private credit firms will only become more essential.
For struggling businesses, they’re a lifeline. For investors, they’re an opportunity. Either way, leaders like Bhalwani are proving that private credit isn’t just about money—it’s about keeping the economy moving when the banks won’t.
