The Data Tapes: 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. 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

• Proud to be named Opportunity Austin's Growth Catalyst award winner at the A-List Awards for our contributions to Austin's innovation ecosystem, with Co-Founder and President Ben Rubenstein also honored as C-Suite Leader of the Year.

• Setpoint featured in Alt Goes Mainstream as a leading fintech shaping the future of private markets. Read more on how private credit is evolving consumer finance through fintech here.

• Thanks to everyone we connected with at ABS East and our capital markets dinner at the Hakkasan. Add your info here to be kept in the loop on our next Setpoint event.

💸 Debt Financings

• Abra Group, one of the largest air transport businesses in Latin America, closed a new $740M term loan credit agreement with Castlelake alongside a $510M private placement. 

• Bridgecrest, a consumer auto lending platform, raised $538.9M in a new ABS issuance collateralized by a pool of retail installment sale contracts on new and used cars. 

• Certified Automotive (CAL), a US auto lessor, expanded a partnership with Ares to purchase and invest up to $1.5B of prime new vehicle leases originated by CAL.

• DailyPay, an earned wage access provider, expanded its credit facility commitment to $200M with Citi to grow advance volume. 

• Dext Capital, an independent equipment finance platform, closed a $200M revolving credit facility with Deutsche Bank to expand origination capacity to $750M.

• GoodLeap, a point-of-sale financing platform for solar and home improvement, entered into a partnership with Tactical Investment Partners and ATLAS SP to acquire over $1.5B of residential solar and storage products.

• Hipgnosis, a music IP acquisition platform, is selling $1.47B of bonds backed by royalties from artists including Shakira, Journey, Red Hot Chili Peppers, and 50 Cent. 

• Kapitus, a small business lending platform, acquired Ten Oaks Commercial Capital to expand its equipment finance and working capital lending business.

• JPalmer Collective, an asset-based lending company, closed a senior credit facility from Texas Capital Bank and a mezzanine credit facility from a NY-based asset manager. 

• Honda issues a new $2.1B ABS transaction secured by a pool of prime, retail auto loan contracts.

• Klarna, a European BNPL platform, announced a $39B transaction to sell its BNPL loans to Elliott Management as it prepares for its IPO. Klarna will continue to service the loans. 

• Lawfty, a tech-enabled personal injury law firm, closed a $40M credit facility with CoVenture. 

• LeasePoint Funding Group, an equipment financing platform, closed a $40M credit facility with Altriarch Asset Management to scale lease originations. 

• Nada closes a $25 Million Revolving Credit Facility from Kawa Capital Management to accelerate Growth of its Home Equity Investment Platform.

• National Funding and its new subsidiary FairSquare, closed a new $83.25M credit facility with Forbright Bank alongside a $9M mezzanine financing from Hudson Cove to scale originations to SMB borrowers. 

• NextGear issued a $328.6M ABS transaction secured by dealer floorplan receivables.  

• Santander has moved $33B of risk off its balance sheet in the first half of 2024. 

• WideOpenWest Finance, the financing division of WideOpenWest, closed a $200M term loan with WSFS.

• YouLend, an embedded financing platform, closed a new financing facility from Castlelake with up to $1B in commitments to scale originations in the US. 

• Zilch, a UK-based BNPL platform, expanded its credit facility with Deutsche Bank to £150M to scale origination volume.

💰️Platform Growth

• Blackstone closed a new $22B direct lending fund focused on lending in large cap and middle market transactions. 

• Canal Road Group, a corporate direct lending firm, closed a $250M credit facility with Wells Fargo. 

• Crayhill raises $725M for its third asset-based finance fund, with a $1.5B hard cap. 

• Golub Capital expands credit facility with Deutsche Bank to $450M. 

• EverBank launched a new corporate asset finance division to expand its equipment financing capabilities, led by Maureen Carr. 

• Hilco and TPG Angelo Gordon formed a new JV to source, acquire, and finance consumer brands and IP in partnership with Bluestar Alliance.

• HPS Corporate Lending Fund upsized its credit facility with JPMorgan and Wells Fargo to $1.52B.

• KLCC SPV GS1, a subsidiary of Kennedy Lewis, expanded its credit facility to $500M. 

• MidCap Financial extended its revolving credit facility to $1.66B. 

• Monroe Capital entered into a strategic partnership with Wendell Group, a French Investment firm, whereby Wendell acquired a 75% stake in Monroe for $1.13B to grow the firm and seed new funds. The transaction includes an earn out of as much as $255M. 

• Morgan Stanley Investment Management raises $2B for North Haven Tactical Value II Fund to provide credit, hybrid, and non-control equity investments in high quality businesses.

📈 Visuals

 🗣️ Market Commentary

• “We’ve always been focused on the disintermediation of the banks…Whether it’s equipment, rail, aerospace, consumer funding, the total addressable market is way bigger than the private credit market.” - Blue Owl’s Co-CEO Doug Ostrover on the growth of asset-based finance

• “We complement each other…We don’t want their client because we can’t sell them any other services. We just want the loan asset. They don’t want the long duration loan asset because it doesn’t fit their liability structure. But they want all the other services.” - Chris Edson of Apollo on complementary dynamics between banks and private credit firms

• “The overall breadth of the market continues to get bigger with more digital infrastructure, music royalties and cell towers and so far investors have been very receptive. Banks need to free up that risk-based capital ahead of implementation of the pending Basel III endgame framework. Banks can’t or aren’t willing to finance as much as they used to and are turning to the public ABS sector.” - Dave Goodson, Head of Securitized Credit, at Voya Investment Management

📖 What We’re Reading & Listening To

• 400 Capital’s Hentemann on Securitization Markets, from Bloomberg Credit Crunch

• A Wall Street Landlord Bought Your Neighbor’s House. It’s a Mixed Blessing, from WSJ

• Evolution of Fund Finance, from Ares

• Fintechs are literally passing the buck to private credit, from Financial Times

• General Catalyst Layers in Financial to Boost its Fortunes, from StrictlyVC

• Global Banking Annual Review 2024, from McKinsey 

• How Banks and Private Credit Became the Best of Frenemies, from Bloomberg Odd Lots

• Q3 2024 Quarterly Fintech Insights, from FT Partners

• Ruminating on Asset Allocation, latest memo from Howard Marks

• Wall Street is Finding New Ways to Slice and Dice Loans, from WSJ