Credit | Investment Insight
October 06, 2023
Asset-Backed Finance: The Next Evolution of Private Credit
Bret Leas | Partner, Co-Head of Asset-Backed Finance
Akila Grewal | Partner, Head of Credit Product
Asset-backed finance (ABF) is a critical tool for financing day-to-day activities for millions of businesses and consumers globally. It comprises a broad set of credit types that touches everyday life from residential mortgages, credit cards and student loans, to planes, trains, automobiles, and more, collectively making up a $20 trillion-plus market today.1 While the growth of private credit has largely focused on corporate credit, we see ABF as a rapidly growing asset class that we believe is the natural progression of private credit.
1 Source: Apollo Analysts as of December 2022.
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