Challenges and Characteristics of Asset-Based Lending

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This chapter explores the challenges and characteristics of asset-backed lending, including the need for tangible assets as collateral, the rarity of asset-based collateral situations, and various types of asset-based lending such as construction leasing equipment and intellectual property. The speakers also discuss the difficulties faced by smaller asset-based lenders and the interest of institutional LPs in this type of lending due to its potential for downside protection and mid-teens returns.

Jess Larsen is in the right place at precisely the right time: after a tough period last year, investor interest in private credit is exploding once again, and his placement agency Briarcliffe Partners is perfectly positioned to benefit from this surge in popularity.

The denominator effect is easing, and LPs are once again finding room for private credit. The asset class gives investors an attractive way to benefit from higher interest rates, but its popularity is also to do with the underperformance of private equity and a proliferation of new strategies.

For this episode of the podcast, we invited Jess to the studio to talk about a rollercoaster year for private credit — and to celebrate the official launch of 9fin's new Private Credit product!