The asset-backed lending opportunity in private credit

The global private credit market is nearing $2 tn in assets under management, opening up a significant opportunity for asset-backed lending (ABL). Estimated at around $40 tn, the addressable market for ABL spans sectors such as consumer finance, real estate, hard assets, and small business lending. As private credit strategies continue to evolve, ABL has emerged as a compelling option for investors seeking diversification and stability.

In a current white paper, Janus Henderson Investors explores the growing role of asset-backed lending in private credit portfolios and outlines the key benefits and considerations for investors looking to tap into this expanding and dynamic market segment.

“ABL’s defining features are its reliance on tangible or financial assets as collateral and its corresponding limited loss potential and ability to offer cash flows regardless of broad market conditions,” explains Brendan Carroll, Senior Partner & Co-Founder at Victory Park Capital Advisors (Janus Henderson Investors).

Download the white paper here.