Capital Decanted #6 S2 Decanter's (Half) Dozen: Asset Based Lending
Sep 9, 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, explore the dynamic world of asset-based lending. They discuss its evolution from a niche solution to a significant capital source for diverse industries, including technology and agriculture. Key topics include the complexity of collateral types, the importance of strategic due diligence, and the rising role of non-bank lenders in the ABL space. Their insights offer a fresh perspective on navigating these intricate financial landscapes.
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ABL Is Exceptionally Idiosyncratic
- Asset-based lending (ABL) is highly idiosyncratic: every loan is effectively a unique snowflake.
- Its diversity of collateral makes it hard to treat as a single homogeneous asset class.
Differentiate ABL From Asset-Backed Finance
- True ABL (private origination) is distinct from large-scale asset-backed finance and securitization.
- Confusing those markets hides trillions in differences and misleads sizing and strategy.
ABL Traces Back To Ancient Trade
- ABL-like lending dates back millennia to Mesopotamian merchants borrowing against goods and future crops.
- The practice evolved through mercantile finance and industrial-era equipment financing.
