In a video interview at Global Investment Institute’s Private Credit Investment Forum in Melbourne, Missy Dolski discussed where the best opportunities are in asset-based finance today, how to access them and why a deep understanding of the assets is critical. She explains that underwriting has to start with understanding what KPIs drive asset value, the cash flows coming off those assets, and then structuring accordingly to ensure sufficient downside protection.
00:14 – Värde has been active in ABF for many years. How have you seen the opportunity set change as the market has evolved?
01:08 – ABF covers a wide range of collateral types. Which segments of the market do you have the most conviction in and are there any segments you are currently avoiding?
02:07 – What does the ABF middle market landscape look like today, and what makes it attractive for investors?
03:11 – How would you describe what best practice in underwriting discipline looks like in ABF?
04:24 – “Data science” is a term widely used across the industry, but what does that look like in practice and how much variance is there in access to and quality of data between lenders?