FICC Focus Crayhill’s Mendez Speaks on Defensive ABL Appeal: Credit Crunch
Apr 24, 2025
Carlos Mendez, Co-Founder and Managing Partner at Crayhill Capital, brings his expertise in asset-backed lending and commercial finance to the discussion. He delves into how tariff-induced uncertainty is reshaping the cost of capital. Listeners will gain insights into Crayhill’s oversubscribed fund and the competitive landscape of private credit. Mendez also touches on team dynamics and the integration of AI in investment management, plus strategies for asset management during economic downturns, influenced by his military background.
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Early Asset-Backed Lending Success
- Carlos and Josh started at Sandler O'Neill working on bank restructurings during the 2010-11 crisis.
- They applied asset-backed financing strategies to specialty finance companies like Green Sky, fueling their growth and public success.
ABL's Structured Cash Flow Approach
- Asset-based lending applies securitization methods from public markets to private, non-bank asset financing.
- Success hinges on understanding cash-flowing assets and protecting investments through structured underwriting.
Team and Tech Structure Advice
- Build teams around sector expertise and deal sourcing for asset-backed lending.
- Integrate strong technology and data infrastructure to track and underwrite diversified pools efficiently.
