The Latest in ABS and Debt Markets

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

🚀 What’s New at Setpoint

• Leading the Conversation at Citi SPRINT: Our CEO, Stu Wall, kicked off Citi SPRINT’s Fintech & Private Credit Conference with opening remarks before we hosted a packed reception. Want to join our next invite-only event in NYC? Let us know.

• On Stage at SFR West: Next week, our Co-Founder and President Ben Rubenstein will deliver a Financing Overview alongside industry leaders in Scottsdale. Schedule time to connect with our team.

• Headed to ABS Summit? Our Head of Capital Solutions Bart Steenbergen is taking the spotlight to share insights on How Technology & AI Are Transforming ABS, Lending & Embedded Finance. Let’s talk in Dana Point! Book a meeting here.

• Recognized as a Top Austin Innovator: We’re honored to be named a finalist for the Austin Inno Fire Awards, celebrating startups driving game-changing momentum. Who will take home the Blazer Award? Read more.

💸 Debt Financings

• Addi, a Colombia-based consumer BNPL platform, closed a $100M credit facility from Victory Park to support credit originations in its core market. 

• Capital One, a bank and auto lender, raises $1.08B in a new ABS transaction backed by prime retail auto loan contracts.

• CarMax, a used car retailer, closed a $1.4B ABS secured by prime auto loans. 

• Continental Finance, a consumer credit card, is preparing to issue a $400M ABS transaction secured by a pool of 1.2B general purchase consumer accounts. 

• EnFin, a residential solar financing platform tied to Qcells, closed a $324.5M ABS transaction secured by consumer loans used to finance residential solar and battery storage installations. 

• Ford Credit Auto is preparing to issue a $1.3B ABS transaction secured by a pool of retail installment auto contracts on new and used auto, light truck, and utility vehicles. 

• Hildene Capital, a $15.6B asset manager, completed a $493M securitization backed by a pool of non-QM residential mortgages originated through CrossCountry Mortgage. 

• Kapitus, a small business lender, closed a new $160M ABS transaction backed by a pool of SMB loans.

• Maritime Partners, a maritime financing platform, closed a $750M warehouse facility with Atlas SP. 

• New Silver, a lending platform for real estate investors, closed a new forward flow with Fortress  to expand availability of RTL originations. 

• Pivot Energy, a renewable energy provider and power producer, closed a $450M credit facility from First Citizens Bank and Atlas alongside a structured equity investment from HASI to finance portfolios of distribution energy generation. 

• Propel, a Canadian consumer fintech company, closed a $330M syndicated credit facility with Pathlight Capital alongside Bastion and Hudson Cove, to support the growth of Propel’s CreditFresh loan portfolio. 

• Santander announced the sale to Blackstone of $1B portfolio of infrastructure loans that finance assets located in Western Europe and the US.

• Sunbit, a point-of-sale financing platform, closed a new $355M credit facility from JP Morgan, Mizuho, and Waterfall to scale originations. 

• Unity Investment Management, which manages a portfolio of 74 medical outpatient buildings valued at $800M, was acquired by Varde Partners. 

• Upgrade, a consumer lending platform, is preparing to issue a $299M ABS transaction secured by a pool of unsecured consumer loans originated through Upgrade’s lending partners. 

• Volkswagen is preparing to sell $1.3B in ABS securities to investors backed by prime auto retail contracts.

💰️Platform Growth

• 17N Capital, a NAV financing fund, closed a $1B investment from Brookfield Credit

• AshGrove Capital, a pan-European specialty lender, held its final close of AshGrove Specialty Lending Fund II at its hard cap of €650M

• Bain Capital raised $9B for its Global Special Situations Fund II

• Brigade Capital closed a $300M investment from Blackstone to support their new private credit strategy and expand its CLO platform

• DE Shaw raised $1B in commitments for its latest private credit fund with a plan to buy assets in corporate and structured debt as well as synthetic securitizations

• Generate Capital, a sustainable infrastructure investment firm, closed a $1.2B credit facility and term loan from JPMorgan, and a syndicate of 13 other banks

• Gramercy Funds Management closed $760M for its latest credit fund

• Silver Point raises $8.5B for its third direct lending fund

• State Street is reported to be “shopping” for a private credit manager

• Stonepeakacquired Boundary Street Capital, a private credit fund with more than $700M in commitments

📈 Visuals

 🗣️ Market Commentary

• “When I was coming up, GE Capital was thought of as the single best originator of senior secured private credit. They used their expertise in engines, medical devices, and aircraft to become a really good lender. That’s essentially what we’ve done.” - Mark Rowan on learnings from GE Capital

• “One of the really interesting lessons that I definitely learned over the last 7-8 years is that for a business like [Hometap], you have to think about your value proposition and who your customer is on the capital side like a product roadmap. It evolves over time. What your value proposition is on day 1 and who that value proposition resonates with on day 1 is different than what that looks like in Year 3 and Year 5 and now in our case, coming up on Year 8.” - Jeff Glass on the the evolution of Hometap’s capital markets “customers” as the HEI asset class becomes more institutionalized

• “Regional banks are basically not lending anymore. This pullback in the commercial bank market is creating significant opportunities for private asset-based lenders. Companies and asset owners have had to look elsewhere for capital solutions which has provided a tailwind for asset-based private credit managers.” - Aaron Peck, Monroe Capital on ABF Market

• “I think we’re in the earlier innings for the asset-based finance market,” Pietrzak told Pensions & Investments in an interview. “I equate the asset-based market a lot to probably where the direct lending market was, let’s call it seven years ago. Not a lot of scaled capital has been raised. I think investors are still thinking about where they put it in their asset allocation model.” - Daniel Pietrzak, KKR on the asset-based finance opportunity and market growth

📖 What We’re Reading & Listening To

• Analyzing expected returns of Regulatory Capital / SRT transactions, from Magnetar

• Extending Credit: Evolving Role of Wholesale Banks in Credit Markets, from Oliver Wyman & MS

• Future of Fintech, an Outlook on the Financial Technology Sector, from SVB

• Global Shipping Tutorial, a podcast with the President of Starbulk Carriers

• New report on Home Equity Market in the US, from Figure

• Jeff Glass, CEO of Hometap, on their founding story, capital markets evolution, and HEI opportunity, with our friend Ted Seides on Capital Allocators podcast

• NAV Lending Market Opportunity with David Philipp, partner at Crestline’s Fund LIquidity Solutions Group

• Oaktree sees historic opportunity for its special situations strategy, from ION Analytics

• Profile on Bay Point Advisors and the market for lending to luxury property owners, from WSJ

• ServiceTitan S-1 breakdown, from Meritech Capital

• Specialty Finance Market Update Q3 2024, from Houlihan Lokey