The Data Tapes: September Edition – Key Moves in ABS and Debt Markets

Welcome to The Data Tapes, your go-to source for the latest in private credit and ABS markets. Twice a month, we deliver bite-sized updates on debt financings, platform fundraises, data insights, market analysis, and the latest from Setpoint.

 🚀 What’s New at Setpoint

• "As one of the largest players in asset-based lending, Citi is excited to leverage Setpoint’s technology and services. Setpoint is connecting lenders like Citi and originators like many of Citi’s clients in a modern way, improving market efficiency and client experience. Given our conviction that Setpoint has built the right solution at the right time, along with the company’s ability to scale significantly and its veteran founding team with a strong history of growing startups to successful exits, we’re thrilled to announce our investment in Setpoint’s Series B round." - Citi blog post on Setpoint Series B

• The Setpoint leadership team will be attending the HEI & Home Equity Capital Markets Forum in Austin this week. Don’t miss the opportunity to meet with them—schedule a time here.

💸 Debt Financings

• Arch, a crypto-backed loan provider, closed a $70M credit facility from Galaxy to finance originations alongside a $5M seed round. 

• BriteCap, a tech-enabled small business lending platform, closed a $150M credit facility from One William Street and North Mill to finance originations.

• Logan Ridge Finance Corporation, a BDC investing in first lien loans, amended its senior revolving credit facility with KeyBank providing $75M in commitments. 

• MA Financial and Flexicommercial, a subsidiary of Humm Group, announced a partnership to purchase up to $1B in loans secured against equipment and vehicles. 

• North Mill Equipment Finance, a commercial equipment financing company, completed a $404M ABS transaction and first of 2024. 

• Parafin, an embedded B2B lending platform, closed a $93M debt facility with Jefferies and Trinity Capital to finance origination growth. 

• Porsche Financial Services, the captive financing arm of Porsche, announced an $850M ABS issuance secured by auto leases - they’re first since 2015. 

• SG Credit Partners, an asset-backed lending firm focused on sponsor-backed CPG companies, upsized their credit facility with First Citizens Bank.

• Subway, the restaurant franchise owned by Roark Capital, is considering a $2.3B asset-backed debt sale 

• TickPick, a mobile and online ticket marketplace, closed a $122.5M senior credit facility with Crestline alongside a growth equity investment from Brighton Park Capital. 

• United Leasing & Finance, a commercial equipment financing platform, closed $425M in credit facilities from Bank of America, US Bank, and Truist.

• Unlock Technologies, a platform that allows homeowners to access home equity through home equity agreements (HEAs), announced a $250M capital commitment from D2 Asset Management alongside a $30M Series B from D2, Saluda Grade, Second Century Ventures, and REACH.

• Wingspire Equipment Finance, a commercial equipment finance company, completed a $201M inaugural ABS issuance secured by large-ticket equipment loans and leases. 

• World Omni, an auto financing platform owned by JM Family Enterprises, announced a $958.2M issuance in asset-backed securities, secured by a pool of prime auto loans. 

💰️Platform Growth

• Ares acquires Riverside Credit Solutions, a cash-flow-based financing platform for lower-middle market companies

• AVANA and funds managed by Oaktree formed a new $250M JV for a direct CRE lending strategy

• CCS Partners, a credit fund focused on structured finance, raises $4B in new commitments

• Clearlake Capital acquired European private credit manager MV Credit Partners from Natixis

• Obra Capital secures new funded and unfunded credit facilities to retire existing syndicated debt and provide growth capital to the asset management platform

• Stifel is forming a new direct lending JV with Benefit Street and Diameter 

• Temasek’s SeaTown raises $1.4B private credit fund for direct lending in Asia

📈 Visuals

🗣️ Market Commentary

• “CIT had industry verticals and excelled in them. SVB presented the same opportunity for us, and so we jumped all over it…As much as we can, we want to keep the SVB identity, what they do and who they serve and their focus on innovation. That marker and identity is going to be crucial moving forward.” - Peter Bristow (President, First Citizens Bank)

• “Over the past decade we have seen some mega equity funds being raised for infrastructure. If a manager has an equity fund of $20 billion, they will likely need in excess of $60 billion of credit to support that deployment…There is definitely a funding gap in infrastructure credit, with the banks under pressure and moving out of the space.” - Patrick Trears, Ares

📖 What We’re Reading & Listening To

• Daily & Weekly US economic indicators from Apollo

• Deep dive on Victory Park’s acquisition and the growth of asset-backed lending from Michael Sidgmore at Alt Goes Mainstream 

• Latest trends in consumer debt and asset-backed finance from AB CarVal

• New podcast on the mechanics and growth of Synthetic Risk Transfers from Bloomberg Odd Lots

• Mr. Market Miscalculates, the latest Howard Marks memo

• Private Credit managers are helping banks keep risky clients, from Bloomberg