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

• Setpoint x Citi SPRINT Fintech & Private Credit Summit: Join Setpoint at Citi’s HQ on Nov. 21 for an exclusive gathering of senior leaders in asset-backed finance. Register here.

• Setpoint x FirstMark Alt Cap Demo Day Today: Setpoint CEO Stuart Wall will be presenting at FirstMark’s 2nd Annual Alt Capital Demo Day in New York. Learn more and join the waitlist for the event.

• Setpoint at the SFNet Convention: Meet the Setpoint team at SFNet's 80th Annual Convention in Houston this week. Click here to schedule a time with us.

💸 Debt Financings

• 8fig, a financing platform for e-commerce sellers, raised a $125M credit facility from SVB. 

• Achieve, a consumer lending platform, closed its fifth securitization backed by debt settlement loans. 

• Affiniti, a spend management and credit card platform for SMBs, closed a $50M committed credit facility from Keystone alongside an $11M seed round.

• American Heritage, an auto lender, is selling $303M in its inaugural ABS transaction secured by new and used automobiles. 

• Asset Based Lending, a provider of private capital to real estate investors, closed a second unrated securitization of $175M.

• Bank of Ireland Group Plc sold a portfolio of €800M of UK consumer loans to Golden Tree. 

• Birch Creek Energy, a utility scale solar and storage developer, raised a $150M credit facility with KKR to finance development and equipment for solar farms. 

• Bridgit, an Australian consumer bridge lender, closed a $250M credit facility with Citi to fund originations. 

• Blue Owl Asset Leasing Fund is selling $367.3M in ABS bonds secured by a pool of equipment loans and leases extended to manufacturing, healthcare equipment, & IT hardware borrowers. 

• Consumer Portfolio Services, a consumer auto finance platform, amended its credit agreement with Citi  to increase commitments to $225M. 

• eCapital, a tech-enabled SMB lender, upsized its ABL facility to $987M with Wells Fargo to scale origination volume. 

• Enova, a consumer finance platform, closed a $665M senior secured line of credit with a syndicate of banks including BMO, Texas Capital and others. 

• Fairplay, a Mexico-based working capital financing platform for e-commerce, closed a new $35M credit facility from BBVA Spark. 

• Highline Properties, a Built-to-Rent community in Knoxville, TN, closed a new credit facility with Crestline Investors to refinance a newly built 110-unit community.

• Iwoca, a UK-based SMB lender, closed a £200M credit facility with Citi and Waterfall to scale originations and increase loan sizes to £1M. 

• Mission Lane, a consumer credit card business, floats a $300M ABS issuance backed by a pool of revenue from its general-purpose Visa credit card.

• Neo Financial, a Canadian consumer fintech platform, closed a $250M CAD credit facility to finance credit card receivables alongside a $110M CAD Series D.

• Octane, a powersports and recreational purchases financing platform, closed a $200M whole loan sale of fixed-rate installment powersports loans to AB CarVal. Octane is also preparing to issue a new $326.4M ABS transaction backed by a pool of equipment and vehicle financing contracts. 

• Oportun, a consumer finance platform, closed a $235M new credit facility with Castlelake. 

• Pagaya, a consumer finance and residential real estate platform, raised $1B across two deals - an $800M AAA-rated personal loan deal and a $200M AA-rated auto loan deal, bringing ABS issuance to $5.5B YTD. 

• Prosper Cap, a hotel asset owner, closed a £66M mortgage-secured loan from Castlelake to refinance a portfolio of 17 hotel assets. 

• Sallie Mae issued a $485M ABS transaction secured by a pool of private student loans.  

• Sunrise Realty Trust, a commercial real estate lender, closed a $200M senior secured credit facility with East West Bank. 

• Tesla, the electronic vehicle manufacturer, issued a $499M ABS deal backed by loans offered to customers buying solar equipment. 

• Westwood Financial, a real estate investment firm, closed a $70M upsize to its existing credit facility with KeyBank and Capital One. 

• Willis Lease Finance, a commercial aircraft leasing platform, closed a $1B revolving credit facility with Bank of America.

💰️Platform Growth

• Apollo and Mubadala extend multi-billion dollar partnership focused on global originations 

• HPS is in advanced talks to be acquired by BlackRock

• PennantPark closed $610M for PennantPark Credit Opportunities Fund IV 

• PIMCO raised more than $2B for its asset-based lending strategy

• Runway Growth Capital, a growth lender with $1.3B in AUM, is acquired by BC Partners Credit

📈 Visuals

 🗣️ Market Commentary

• “Some of the risks that we work on underwriting and managing on behalf of clients may have been originally developed years ago in a securitisation market, but now in the private markets, we may have better access to information. I think for specialty finance, and for asset-based lending more broadly, we’re much more at the beginning of the game, and there’s just, I think, a lot of tailwinds to support this development.” - Kris Kraus, PIMCO on the asset-based finance market

• “The growth of private markets is underpinned by the continued rise of infrastructure. It presents a generational investment opportunity. Over the next 15 years, we'll need to invest $75 trillion to repair aging infrastructure to invest in new projects like data centers and decarbonization technology. The current cash flow inflation-protected return profile of infrastructure makes it an attractive sector for our clients.” - Larry Fink, BlackRock

• “On the SMA side, we’re just seeing more insurance companies recognizing the benefit of investment-grade private credit, particularly in the asset based space. As you know, they’ve always done commercial real estate on a private basis. Some have done private placements. But the movement into this $25 trillion asset based arena feels like it’s in its very early days.” - Jon Gray, Blackstone

• “So, as you heard from Rob, $66B of AUM [in asset-backed finance], up 40% over the last 12 months. And the great thing about having a business of that scale is we can be relevant at a whole bunch of different levels of risk reward. So insurance activity, when we look at Global Atlantic together with our other insurance clients, so this is really investment grade, single A-rated credit. Origination was $22B year-to-date. So on a run rate basis, we're at a $30 billion annual pace, more than double our pace of activity in 2023. We have 35 platforms, including real estate, helping generate differentiated origination for us, 7,000 people waking up very day, looking to help source proprietary origination.” - Craig Larson, KKR

📖 What We’re Reading & Listening To

• Ares Investor Presentation

• Brookfield Investor Day Presentation

• Evolution of Asset-Backed Finance, new podcast from Oaktree

• Hares, Beware: Future-Proofing Credit, from KKR

• Parking Payments and Curb Management report, from FT Partners

• Performing Credit Quarterly 3Q2024 podcast, from Oaktree

• Nicolai Tangen podcast with Mark Rowan, from In Good Company

• Wall Street frenzy creates $11B debt market for AI groups buying Nvidia chips, from FT