Värde’s CEO Brad Bauer spoke with Structured Credit Investor about the firm’s approach to Asset-Based Finance and where he sees the best opportunities today.
Key highlights from the discussion:
- Expanding Market Opportunities: Multi-trillion-dollar markets within Asset-Based Finance continue to move to the forefront for non-bank capital, including expanding opportunities within Fund Finance.
- Partnership Approach: Värde’s approach to Fund Finance involves working alongside banks to provide capital and risk management, complementing and enhancing their capabilities rather than replacing them.
- Value in the Middle Market: Demand remains robust across ABF subsectors such as equipment leasing, trade receivables and SME lending – particularly in the middle market, where pricing has proven more stable than in larger transactions.
- Data-Driven Execution: ABF is a highly technical and data-driven asset class, making data science capabilities essential for properly underwriting and structuring investments.