Speciality finance

‘Private Credit+’ is a $45trn opportunity globally. Direct lending, $1.5trn of that amount, is saturated, the report says.

The deal will enable Teylor to expand its lending business across Europe while providing a template for future global ambitions.

Speciality finance strategies are gaining pace in the broader credit market, with investors keen to participate in niche plays.

Asset-backed finance is only at the beginning of its growth journey as opportunities for stable returns continue to proliferate in the space, says Sridhar Bearelly, head of alternative credit at ICG.

The growing asset class is relatively well insulated from trade wars and geopolitics.

Investors that are early to recognise the huge growth potential of royalties are well positioned to reap the benefits of innovation in the space, says Partners Group’s head of royalties, Stephen Otter.

Inside: How asset-backed finance is going mainstream; The asset class insulated from trade wars and geopolitics; Expert analysis from ICG, Partners Group and InterVest capital partners; Plus, much more…

Speciality finance lenders – particularly those with expertise in asset-based lending – can leverage their flexibility relative to other capital providers to offer strong downside risk mitigation for LPs, says Michael Gontar of InterVest capital partners.

The instruments bear similarities to NAV loans and dividend recapitalisations and are increasingly intriguing to LPs.

With demand for asset-backed finance at an all-time high, can speciality finance investors still find niche opportunities in this market?