Asset-based lending became a key topic in investor discussions last year and looks like the new frontier in private credit—but does it suit insurers’ needs?
As seasoned allocators know, asset-based lending (ABL) has been a staple of credit markets for decades. So why, all of a sudden, did the asset class grow so much and top the agenda of so many investors in 2024?
The first reason is that the underlying assets in ABL structures are evolving rapidly. Traditional commercial real estate lending, trade finance and credit card receivables are today complemented by assets such as NAV lending, GP financing, data centre loans and residential solar panel receivables.
Secondly, fintech companies are becoming an increasingly important source of loans for ABL structures, as they increasingly disrupt banks’ traditional hold on consumers with online Buy Now Pay Later or Point of Sale financing solutions.
You can now read the full whitepaper at the link below
