The Four Pillars of Alpha in Asset-Based Finance

Private credit is much more than a direct lending story. It’s an asset-based finance one, too. And this other lane of private credit continues to be a solid source of diversification and returns. Benjamin Ensminger-Law and Jason Steiner  join Greg Hall to walk through this evolving opportunity in private credit, starting with why cash flow velocity and structural diversity set asset-based financing apart from direct lending. From there, they lay out the four pillars of generating alpha in an asset class still in its early innings

Show notes:

(3:58) The state of asset-based finance

(10:09) How the opportunity has evolved

(20:57) Where the consumer meets asset-based finance

(25:16) Deploying capital in such a big space

(30:00) Four pillars of alpha in asset-based finance

(35:10) What we used to do that we don’t anymore

(40:04) What sets asset-based finance apart

(43:20) The illiquidity premium: public vs private markets

If you enjoyed the episode, check out our other asset-based finance resources:

Private Credit’s Other Lanes Still Offer Value with Lotfi Karoui