Asset-Based Finance

Powering the Real Economy. Where Consumers and Capital Converge.

AB CarVal has been managing asset-based finance investments since 1987, with a focus on whole loan portfolios, forward-flow agreements, specialty finance platform investments, commercial real estate debt and structured credit.

Asset-based finance helps to power the real economy. At an estimated $6.3 trillion,* the nonbank lending market provides much of the financing for residential and commercial property, cars, credit cards, small business loans, commercial equipment, and niche sectors in consumer lending. 

To date, AB CarVal has invested over $31 billion in more than 2,035 loan portfolio transactions across 31 countries. The firm works with industry-leading servicers to manage the assets in which it invests. The firm navigates this market with strong sourcing and underwriting skills and a network of reputable servicing partners in the US and Europe. Underlying investments are often granular in nature, requiring bilateral negotiations with banks, and de-risking because of the self-amortizing nature of the loans.

AB CarVal is also focused on real estate debt deals across bridge and construction lending, structured credit, and special situations, drawing on AB CarVal’s nearly three decades of experience investing throughout the capital stack in commercial real estate.

AB CarVal’s structured credit investments include residential and commercial mortgage-backed securities, collateralized loan obligations, and other asset-backed securities. AB CarVal’s focus in structured credit has historically been on investments in safe havens with predictable cash flows. The team is constantly monitoring the upside and downside of each sector and each position specifically. Using fundamental analysis and a keen awareness of the supply and demand condition for each financial asset, currently and in the future, the team actively trades each sector.

*Source: Asset-based-finance-a-fast-growing-frontier-in-private-credit.pdf