Expert Q&A: ABSF - An Emerging Opportunity

In the latest issue of Private Debt Investor, Northleaf's CJ Wei, Managing Director, shares insights on how niche asset-based specialty finance offers attractive yield for well-managed risk.

"A debt-orientated ABSF strategy can be particularly attractive for investors as part of a broader credit portfolio, offering yield enhancement, significant collateral coverage, borrower alignment and robust lender protections.

Asset-based lending can provide strong downside-protected investments when you combine highly diversified portfolios with conservative structures, significant asset coverage, borrower alignment and lender-protective covenant protection. ABSF asset performance and valuations are typically very stable and, unlike public fixed income, private ABSF investments are not traded and not valued on a daily basis, which can mute the mark-to-market volatility within an investor’s portfolio."

Learn more about Northleaf's perspective on asset-based specialty finance in the full article titled “An Emerging Opportunity" in the Private Debt Investor March 2025 issue.