JLL, a commercial real estate services firm, resorted to private credit markets to fund an Arizona property project after governmental debt and loan markets rejected it.

Five Star Development’s $585 million refinancing loan may have cost more than any bank loan or bond.

The May arrangement is part of a burgeoning private lending sector, where pension funds and wealth managers seek high yields to meet borrowers blocked by public markets.

Property developers, privately owned enterprises, and start-ups also crowd private markets.

Asia has caught up with the West, with Muzinich & Co. closing a $500 million Asia Pacific private debt strategy, yielding 10%-18%.