Capital Decanted S2 | Episode 10: Asset-Based Lending: An Asset Class or a Collection of Esoteric Collateral? with Greg Turk and Cedric Henley
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Jun 24, 2025 
Cedric Henley, Partner and Chief Risk Officer at SLR Capital Partners, and Greg Turk, Deputy CIO of the Illinois Police Officers Pension Investment Fund, delve into the evolving world of asset-based lending (ABL). They discuss the diverse collateral options, from real estate to R&D, and how ABL has transitioned from a last-resort funding option to a vital strategic tool. The duo highlights the importance of thorough due diligence and the need for strong borrower relationships, while contrasting ABL's growth in the U.S. against emerging trends in Asia.
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ABL’s Unique Idiosyncrasy
- Asset-based lending (ABL) is highly idiosyncratic with each loan being unique like a 'snowflake.'
- This specialization makes it challenging to categorize ABL as a homogeneous asset class.
Bitcoin Mining Collateral Example
- A weird example of ABL collateral is Bitcoin mining companies borrowing against their mining computers.
- The risk arises if Bitcoin's value drops significantly, impacting collateral worth.
Ancient Roots of ABL
- ABL dates back to ancient Mesopotamia, where merchants borrowed against goods and farmers against crops.
- Thus, ABL is arguably one of the oldest forms of credit.