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    The $25 Billion 'Dog Motel' Business You Didn't Know Existed

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    Boarding kennels are a multibillion-dollar category that almost no institutional capital covers. Robert Capelli sizes the market and explains how a fragmented, owner-operated industry became a private credit opportunity.

    • #privatecredit
    • #petindustry
    • #marketopportunity
    • #alternativeinvestments
    • #realassets

    From the full episode

    Inside a New Private Credit Asset Class: Dog Boarding and Kennels

    It's a space that takes up about 25 billion of $150 billion pet care space in the US on annual.
    Listen to the full episode with Robert Capelli

    Frequently Asked Questions

    What is the $25 billion "dog motel" business?
    Boarding kennels and pet resorts — a roughly $25 billion slice of the $150 billion US pet care market that operates like hospitality, renting kennel doors on a daily basis all year round.
    Why has institutional capital ignored it?
    There was no product. Robert says banks pushed everything to the SBA, and outside of that and seller carry there was no lender in the space — comparable to how ag banks eventually built products for cattle and crops but nobody did it here.
    How is Canine Capital scaling into it?
    Mostly word of mouth in a fragmented, owner-operated industry, with a goal of $200 to $250 million in annual originations — roughly $75 million this year and hitting that target by 2027.

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