The Four Pillars of Alpha in Asset-Based Finance

Private credit is much more than a direct lending story. It’s an asset-based finance one, too. And this other lane of private credit continues to be a solid source of diversification and returns. Benjamin Ensminger-Law and Jason Steiner  join Greg Hall to walk through this evolving opportunity in private credit, starting with why cash flow velocity and structural diversity set asset-based financing apart from direct lending. From there, they lay out the four pillars of generating alpha in an asset class still in its early innings Show notes: (3:58) The state of asset-based finance (10:09) How the opportunity has evolved (20:57) Where the consumer meets asset-based finance (25:16) Deploying capital in such a big space (30:00) Four pillars of alpha in asset-based finance (35:10) What we used to do that we don’t anymore (40:04) What sets asset-based finance apart (43:20) The illiquidity premium: public vs private markets If you enjoyed the episode, check out our other asset-based finance resources: Private Credit’s Other Lanes Still Offer Value with Lotfi Karoui • Apple • Spotify Asset-Based Finance: New Frontiers in Private Credit • Apple • Spotify [DISCLOSURES] The discussion and content provided within this podcast is intended for informational purposes only and may not be appropriate for all investors. Reliance upon information provided in a podcast is at the sole responsibility of the listener. The information included herein is not based on any particularized financial situation, or need, and is not intended to be, and should not be construed as, a forecast, research, investment advice or a recommendation for any specific PIMCO or other security, strategy, product or service. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investors should speak to their financial advisors regarding the investment mix that may be right for them based on their financial situation and investment objective. Podcasts may involve discussions with non-PIMCO personnel and such content contain the current opinions of the speaker but not necessarily those of PIMCO. Other podcasts may consist of audio recording of an existing PIMCO article and such material contains the current opinions of the manager. The opinions expressed in all podcasts are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. For additional important information go to www.pimco.com/gbl/en/general/legal-pages/podcast-disclosures.