Asset-based lending is set to expand over the next 10 years at the same heady pace as private credit, according to Bruce Richards, CEO and Chairman of Marathon Asset Management. “The $100 billion middle-market lending and private-credit lending business in 2008 which grew to $1.7 trillion where it is today — a 17-fold increase — you’ll see the same thing happening in ABL in this next decade,” he tells Bloomberg News’ Lisa Lee and James Crombie and Bloomberg Intelligence’s Arnold Kakuda, in the latest Credit Edge podcast. “I love ABL,” said Richards, referring to loans backed by assets like consumer loans, aircraft and ships. In addition, Richards details how his firm is making returns that can exceed 20% buying office loans from banks, which are having to sell them for regulatory reasons. “Commercial real estate represents a lot of distress in the marketplace but also one of the greatest opportunities in the marketplace right now,” said Richards.
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