Asset-based finance (ABF) is widely considered to be the next big investment opportunity in private credit. Though not a new concept, it has recently attracted growing attention from institutional investors looking to diversify their credit portfolios beyond traditional corporate direct lending.
However, the breadth and complexity of the asset class require a closer look: understanding the nuances around origination, structuring, risk management and data feedback loops can help investors sift through the capital and new entrants moving into the space.
In this episode, Isaiah Toback, deputy co-chief investment officer at Castlelake, explains what investors should look for beneath the ABF label.
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