Finsire’s Post

Formal Credit outstanding for the following assets: Loans against Mutual Funds: ~ 18K Crs Loans against Demat securities: ~ 16K Crs Loans against Gold Jewelry: ~ 1.1 L Crs The market can beat the high operating costs, non-digital, unreliable, fungible, and cartel-led industry of gold loans.

Wealth managers battle it out in the alternative asset thunderdome 🤼 HNW and UHNW clients hold approximately 20% of their wealth in alt assets. That’s a LOT of 💰 that if valued accurately could be leveraged for loans at higher LTVs. These clients are yielding strong returns from alt assets while also borrowing against them. They’re able to access cash fast through "Security or asset based loans," especially during periods of high inflation and interest rates. 📈 Banks notice this shift towards asset-based loans rather than cash-flow loans during uncertain economic times when traditional lending becomes challenging. Total asset-based lending commitments increased 10% in 2022 to $502.3 billion. The benefits of asset based vs cash loans are: • Favorable financing, higher advance rates, more competitive pricing and terms • Faster processing times  • Returns on investments usually cover the loan's interest • Opportunity to borrow more against assets that are increasing in value So, wealth managers, get your leotard on and enter the thunderdome, it’ll help unlock financial opportunities for your clients. It's time to unleash that hidden wealth. 🎉

🤔 LPs, how do you know if NAV loans serve additive or dilutive use cases in your funds? 💵 GPs’ adoption of NAV loans to address capital and liquidity needs has stirred mixed feelings among allocators. Unsurprisingly, taking on an additional layer of debt amid rising interest rates and instances of using borrowed funds to accelerate distributions have raised eyebrows. 🤝 However, these facilities can serve a number of value-additive use cases, and many fund managers have a strong underlying rationale for deploying this kind of fund-level financing, such as funding M&A pipelines. 🧰 Yet, while NAV loans can offer a versatile tool for achieving a wide range of investment objectives, cross-asset collateralization marks a fundamental departure from the traditional PE playbook and introduces several risks for LPs. Explore key factors LPs should consider amid the rise of NAV loans and how technology can offer enhanced visibility into the impact of NAV and other fund-level financing on their portfolio. ➡️ https://lnkd.in/gxvAtDz8

In the right circumstances, net asset value (NAV) loans are an excellent option for private equity funds looking to create liquidity and flexibility at the end of a fund's life cycle. I recently authored a blog post on NAV loans with my SVB colleague Dirk Engelbert, CFA. Check out the article to learn how funds can strategically use NAV loans and please reach out if you have any questions. https://lnkd.in/gKumQKek #fundfinance #privateequity #privateequityfunds #privateequityfirms

When traditional financing falls short, private lending offers a world of flexibility. At JCAP, we understand that every project is unique, which is why we tailor our terms and conditions to suit your specific needs. From adaptable repayment schedules to personalized loan structures, our flexible approach means you get the capital you need—on your terms. It’s lending designed around your goals, not rigid criteria. Your Go-To Hard Money Lender 🤝💵 https://jcap.net/ #BestHardMoneyLender #RealEstateInvesting #FixAndFlip #PrivateLender #QuickLoans #FastApproval #RealEstateLoans #NoCreditCheck #InvestmentProperty #HardMoney

NAV lending continues to be a very hot topic, and it's starting to shed the "stigma" that it's carried for the last 10 years or so. An increasing number of lenders / investors are providing NAV lines to private equity sponsors who are using the proceeds as a means to return capital to LPs who are eager for liquidity. This market is not nearly as efficient as the asset-level / portco level financing markets, so running a competitive process is even more critical to execution. #privateequity #privatecredit https://lnkd.in/eAdxxf6C

How does Asset-Based Lending (ABL) work? • Lenders that choose to sell their loans typically place them into special purpose vehicles (“SPVs”) or trusts. • Loans in SPVs can be financed either via public or private markets. • All principal and interest cash flows generated by the underlying loans in the SPVs go to pay investors according to a prescribed waterfall. Read how to gain exposure to Private Asset-Based Lending and how private credit managers can take specific positions in the capital stack: https://lnkd.in/e3x2eKpM #PrivateCredit #AssetBasedLending

MetLife Investment Management takes a unique approach to securities lending, focusing on liquidity, capital efficiency, and a strategic "mismatch" reinvestment. This method aims to generate superior and consistent income streams. For a deep dive into their strategy, download the full report now: https://lnkd.in/gJiNrJwU #SecuritiesLending #InvestmentManagement #MetLifeInvestmentManagement #InsuranceAUM

EverBank is fostering closer collaboration between its fund finance and asset-based lending teams to provide a more holistic service to private credit GPs. This strategic move underlines EverBank's commitment to supporting the evolving needs of the private credit industry. Read the story here to learn more: https://okt.to/5EJLqS #PDI #PrivateDebt #FundManagers #FundManagement