Why asset-backed finance is the next big hit for speciality finance

With demand for asset-backed finance at an all-time high, can speciality finance investors still find niche opportunities in this market?

The past 10 years may have been the decade of direct lending, but 2025 heralds a new era – the era of asset-backed finance (ABF). The market is estimated to be worth more than $6 trillion by KKR Credit, with the potential to exceed $9 trillion within the next few years.