The rise of asset-based lending has been a major trend in private credit
Both asset-based lending and asset-based finance have become extremely popular areas of financing within the private credit asset class.
To an extent ABL and ABF are interchangeable, although the former tends to refer to specific company assets that act as the underlying collateral for a loan – such as inventory or receivables – whereas the latter embraces a wider range of collateral (often not related to company assets) such as infrastructure, real estate, cars and mortgages.
ABL and ABF bear some similarity to the likes of asset-backed securities (financial bonds secured by a pool of income-generating assets) and factoring, a financial transaction where a business sells its accounts receivable to a third-party factoring firm at a discount to improve short-term cashflow.
Filling the gap left by the banks
The rise of ABL and ABF in private credit has occurred largely due to the banks deciding that they no longer have the risk appetite for these types of loans – and duly offloading many of them to the private sector. The rationale is similar to that which drove the rapid growth of direct lending – and many observers predict that private ABL and ABF will become even bigger than the direct lending market.
Funds covering this part of the market are accounting for a larger proportion of capital raising within the private credit asset class. In our LP Perspectives 2026 study, 35 percent of investors said they planned to invest more in ABF over the following 12 months – making it the second-most-popular allocation choice after direct lending.
ASSET-BASED LENDING INSIGHTS
Goldman Sachs AM appoints new co-head of APAC client solutions
The US firm has hired an executive from JP Morgan, as insurers and other allocators continue to push into private credit, Private Debt Investor can reveal.
Q&A with Cambridge Associates’ Audrey The
Cambridge Associates’ Asia team is focusing more on asset-based finance, lower mid-market direct lending and speciality lending, with an eye on regional diversification.
What are the top five issues for Asia-Pacific private debt?
We examine the top takeaways from Private Debt Investor’s Japan Korea Week at a watershed moment for the global private credit industry.
Corinthia Global Management on capturing private credit opportunities in an uncertain market
Investor demand for private debt has flourished, but strong alignment will distinguish the highest-quality lenders, say Corinthia Global Management’s Craig Shirey, Mark Wilton and Boris Okuliar.
Private debt fundamentals remain strong amid disruption: Aware Super, ART
Speaking at a PEI Investor Council event in Sydney, the superfunds said their debt portfolios were performing well and that recent high-profile fund redemptions did not change market fundamentals.
State of the market Q2 2026: Pockets of pressure
According to some, the future is at stake (and perhaps be worried if your firm name begins with ‘B’), but there is little in the way of evidence that private credit faces a crisis that spans the entire asset class.
Retail, ABF and diversification – key takeaways from the PDI Europe Summit
In this podcast, Private Debt Investor’s editors discuss highlights from the 2026 Europe summit held in London at a time when appetite is growing for the asset class.
Apollo beats target on a hybrid fund with $6.5bn close
The strategy that sits between debt and equity is seeing increasing demand from investors.
New opportunities arise in private credit amid redemption wave: Milken panel
Retail investor redemptions are not being viewed as a troubling sign for private credit GPs, panellists say, echoing US SEC chair’s sentiment that asset class is not facing systemic issues.
LibreMax launches debut interval fund as hedge funds circle private credit
LibreMax Asset-Backed Income Fund targets asset-backed finance and traded structured credit opportunities.
Private Debt Investor’s latest report reveals the latest trends around asset-backed strategies.
Asset-backed strategies have been sparking growing excitement in recent years as investors realise the huge opportunities in an addressable market many times as large as direct lending. We look at how the asset class is winning over investors but also consider how to avoid getting carried away with all the hype.
BCRED caps repurchase requests: feature or bug?
Blackstone, facing 10% redemption requests, adds to the recent spate of redemption limits from BDCs as outflows rise.
HSBC raises $2bn for UK direct lending second vintage
The strategy involves investing in private equity-backed deals originated by HSBC’s UK banking arm.
Crescent Capital closes fund with $10.8bn of investable capital
The fourth vintage lower mid-market fund, the manager’s largest ever, raised more than $5.5bn of equity.
The two “D’s” – a new era of dislocation and dispersion
This week’s publication of our latest fund performance data was a reminder that strong returns can be made in troubled times.
Loan Note: Key findings from our latest fund performance report; borrowers standing firm in face of stresses
Strategic and geographic breakdowns in our latest fund performance data. Also, S&P identifies resilience in portfolios despite pressures; and Permira prices latest US CLO. Here's today's brief for our valued subscribers only.
