Asset Backed

Today I posted our third and final episode of “The Asset Based Lending Masterclass” where I had the pleasure of spending time with Matt Edgar, Founder and CEO of Edgar Matthews & Co., to discuss the nuts and bolts of financing specialty finance originators, from non-bank ABL through securitization. Edgar Matthews & Co. is a financial services sector-focused investment bank established last year and is quickly becoming a go-to advisor for unique financing solutions, as well as M&A advice, for the specialty and alternative lending spaces. Matt and his team cover the ecosystem comprehensively, with experience across commercial finance, consumer finance and more esoteric and emergent asset classes and bring “big bank” capabilities to specialty finance companies of all sizes. I look forward to watching the Edgar Matthews platform continue to grow into a leader in the space and hope to have Matt join the Asset Backed podcast again soonNothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. This conversation has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Viewers should not construe the contents of this conversation as legal, regulatory, tax, accounting or investment advice or a recommendation. Viewers should consult independent counsel, tax and financial advisors as to legal and related matters concerning any transaction.Topic we cover in Part III include:Securitization- At a stage where the track record is proven out and the firm is maturing, perhaps the ABS opportunity now is more realistic. What are those signals, markers?- Why would you seek it out?- What is a private securitization? Where does EM focus?- What role do the rating agencies play, if any?- At what stage should an originator begin to explore ABS and what type of advisors are typically required for an ABS transaction vs an asset-based financing for an early stage originator involving a warehouse or ABL facility?- Will advisors and service providers differ in the private ABF space versus the earlier stages where the originator is setting up a warehouse, ABL or first facility or forward flow?Specialty Finance- Key considerations for specfin originators as they evolve and seek to tap the bank, securitization or broader cap markets?Trends- What costs are you seeing and how will these differ by stage and maturity of company?- What do you expect to come from the private ABF market in the next 1-2 years?Please reach out with any questions, comments, or thoughts about the show to [email protected].

The Asset Based Lending Masterclass Part II of III. Raising Debt Capital for your Specialty Finance, Fintech Lending, or Alternative Lending Platform with Special Guest and Asset Backed Podcast Contributor Matt Edgar, Founder & CEO of Edgar MatthewsMatt Edgar, Founder & CEO of boutique investment bank Edgar Mathews & Co., and I recently recorded part two of our three part series Masterclass in Asset Based Lending. This is episode II of III.  In recent months specialty finance, asset based finance, and different related credit themes have gotten significant attention in the press and from market participants. Together Matt and I dive into the process of how a growing lending business raises debt financing. This content will be particularly beneficial we believe for growth-stage and middle-market sized originators and lending businesses who are seeking to execute their first securitization and rated transaction. Originators who have previously raised other financing and debt facilities from institutional capital providers and are evaluating the ABS market will find this conversation potentially relevant given the nuances and differences the ABS marketplace presents from other funding markets. I hope you enjoy and join us on each of these special episodes.Disclaimer: Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. This conversation has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Viewers should not construe the contents of this conversation as legal, regulatory, tax, accounting or investment advice or a recommendation. Viewers should consult independent counsel, tax and financial advisors as to legal and related matters concerning any transaction.The topics in Part II of III include: - Term sheet basics and advanced concepts once you have identified lenders interested- What are the main structures through which a specialty finance originator can access capital?- What are the different types of investors that can be approached? - What are considerations for each cohort of investor?- We walk through some of the key structural features of ABL facilitiesEligibility CriteriaExcess ConcentrationsMinimum Utilization & AccordionsFinancial CovenantsCollateral Quality Tests & TriggersEvents of DefaultOther- An overview of the closing and funding process of asset-based financing facilities- Biggest mistakes borrowers make when raisingPlease reach out with any comments, questions, or feedback about this series or previous shows. You can reach me at [email protected]

Asset Based Lending Masterclass Part I of III. Raising Debt Capital for your Specialty Finance, Fintech Lending, or Alternative Lending Platform with Special Guest and Asset Backed Podcast Contributor Matt Edgar, Founder & CEO of Edgar MatthewsMatt Edgar, Founder & CEO of boutique investment bank Edgar Mathews & Co., and I are recording a three episode Masterclass in Asset Based Finance. In recent months specialty finance, asset based finance, and different related credit themes have gotten significant attention in the press and from market participants. Together Matt and I dive into the process of how a growing lending business raises debt financing. This content will be particularly beneficial we believe for startup, emerging, growth-stage and middle-market sized originators and lending businesses who are seeking to raise debt facilities from institutional capital providers. I hope you enjoy and join us on each of these special episodes.Disclaimer: Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. This conversation has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Viewers should not construe the contents of this conversation as legal, regulatory, tax, accounting or investment advice or a recommendation. Viewers should consult independent counsel, tax and financial advisors as to legal and related matters concerning any transaction.The topics in Part I of III include:Intro: Firm overview, background, etc.A broad overview of the capital raising process and how Edgar Matthews works with originators/lenders seeking to raise debt financing The process for each issuer/lender will differ quite a bit depending on the vertical, stage of the company, collateral, debt solution required, etc. We focus on private ABL facilities more than securitizations in Part I. Preparing for the capital raising processKey structural features of warehouse and ABL facilitiesBest practices for moving from term sheet to closed transactionThe topics in Part II of III include: The main structures through which a specialty finance originator can access capitalThe different types of investors (or providers of debt capital) that can be approached. Considerations for each cohort of investor.Key structural features of ABL facilitiesBorrowing Base / Advance Rate (also covered previously)Eligibility CriteriaExcess ConcentrationsMinimum Utilization & AccordionsFinancial CovenantsCollateral Quality Tests & TriggersEvents of Default4. The closing and funding process of asset-based financing facilities The topics in Part III of III include:1. Biggest mistakes to avoid in the debt capital raising process2. Biggest struggles for originators when working with investors3. Advisors and specialists you may want to engage when executing an asset-based financing4. Key considerations as specialty finance originators evolve and grow and want to tap into the bank, securitization or broader capital markets5. The current cost of capital and market terms and how this differs by stage and investor type6. The growth and evolution of private asset-based finance and what we may see over the next 12-18 months

About Cesar Bello:Cesar Bello is Partner, Research and Portfolio Management lead of the Litigation Finance ("LitFin") effort at Corbin Capital Partners. Cesar also works more broadly on the firm’s private investment program. Prior to joining Corbin, Cesar worked at Skadden, Arps, Slate, Meagher & Flom LLP and Ivy Asset Management. Cesar is the Portfolio Manager of the LitFin strategy at Corbin Capital, which has been active in commercial litigation finance since 2018, deploying approximately $400mm with a differentiated approach focused primarily on shorter duration, credit-like opportunities with downside protection.  About Corbin Capital Partners:Corbin Capital Partners is a woman-led independent alternative asset management firm that specializes in multi-strategy hedge fund and opportunistic credit investing. Corbin has experience creating and managing differentiated commingled and bespoke portfolios for investors globally. As a firm that strives to create high-quality solutions for clients, Corbin deploys a broad toolkit of investing techniques, including external fund investments, opportunistic co-investing and direct trading capabilities. The firm is focused on maintaining its client centric model and continuing to serve as a trusted partner to clients.  As a woman-led firm, Corbin Capital is committed to diversity, equity, and inclusion throughout the organization, inspired by its diverse leadership team. As of April 1, 2024, Corbin had $9.10 billion in assets under management.About Litigation Finance:Litigation finance is the provision of third-party capital to help finance law firms or plaintiffs pursuing legal claims in exchange for a portion of proceeds received.  This is an emerging asset class in the U.S. that is generally underbanked and misunderstood, in part because the "collateral" is often difficult to value. Cesar and the Corbin Capital team recently published a great white paper on LitFin that I recommend checking out.About the Episode:In this episode Cesar explains the background of the LitFin industry, what it is, how the asset class works, and the various ways to access it. We spend the majority of the conversation talking about the different investment approaches, and Corbin Capital's focus on shorter duration credit-like cases with emphasis on downside protection as well as multiple off-ramps and levers to express risk and unlock value, with examples from real cases. We discussed risk factors, challenges, and how LitFin firms are differentiated in their approach to portfolio construction and case origination plus much more.Additional Resources:Cesar was interviewed for a story by Bloomberg Law on LitFin and you can read that article here.