While market headwinds sober our outlook to some degree in the coming year, Colonnade believes that the fix & flip lending industry is an attractive long-term investment opportunity. The industry serves an important need in the value chain, and demand for its services will continue to increase. M&A activity can fortify the “survival of the fittest” – larger, established players will command a competitive advantage and weather the storm. We expect significant investment activity and consolidation in the sector over the next 24 months.