Participant directory
Finding capital providers
Finding capital providers
Capital providers are the funding engine of ABF. This guide helps you identify and evaluate warehouse banks, credit funds, insurance platforms, and back leverage providers for your transactions.
Warehouse banks
Warehouse banks provide revolving facilities that fund asset origination and accumulation. Most require existing relationships or meaningful deposit/ancillary business.
Major warehouse providers
| Bank | Notable Asset Classes | Typical Facility Size | Notes |
|---|---|---|---|
| JPMorgan | Consumer, mortgage, equipment | $100M+ | Requires relationship, long lead times |
| Barclays | Consumer, specialty finance | $50M+ | Active in fintech platforms |
| Citibank | Broad coverage | $100M+ | Strong in mortgage, consumer |
| Goldman Sachs | Consumer, fintech platforms | $50M+ | Flexible on structure, competitive pricing |
| Deutsche Bank | Specialty, esoteric | $50M+ | Will look at unusual asset classes |
| Morgan Stanley | Consumer, residential | $75M+ | Active in solar, home improvement |
| Wells Fargo | Mortgage, commercial | $100M+ | Conservative, strong in mortgage |
| Bank of America | Broad coverage | $100M+ | Scale required, long approval process |
| Jefferies | Specialty, emerging originators | $25M+ | More flexible on size and history |
| Credit Suisse/UBS | Consumer, specialty | $50M+ | Post-merger dynamics evolving |
How to approach warehouse banks
The reality: Most warehouse banks won’t take a cold call from an unknown originator. You need an introduction or a compelling reason for them to engage.
Paths that work:
-
Existing banking relationship: If you have a commercial banking relationship with a bank, ask your relationship manager for an introduction to the structured products group. Deposit relationships create leverage.
-
Counsel or advisor introduction: Your ABF counsel has relationships with bank deal teams. Ask for a warm introduction once you have materials ready.
-
Conference meetings: Request meetings at ABS East or SFIG Vegas through the conference platform. Banks allocate time for new relationship meetings.
-
Track their deals: If a bank just did a deal in your asset class, they’re in the market. Reference the public deal when reaching out.
What to have ready:
- Executive summary of your platform and collateral
- Historical performance data (static pool or vintage data)
- Business plan showing expected origination trajectory
- Audited financials (or path to audit)
- Clear articulation of facility size and structure you’re seeking
Bank selection considerations
| Factor | Why It Matters |
|---|---|
| Asset class experience | Banks with existing programs in your asset class can move faster |
| Pricing vs. flexibility | Some banks offer better pricing but rigid structures; others are more flexible |
| Advance rate appetite | Higher advance rates mean less equity required but more negotiation |
| Approval timeline | Bank approval processes range from 3-6 months; factor this into planning |
| Ancillary requirements | Many banks expect deposit relationships or other business |
| Renewal risk | Some banks have reputation for non-renewal; ask references |
See also: Bank Balance Sheet for detailed guidance on bank economics and negotiation.
Credit funds active in ABF
Credit funds deploy private capital into ABF assets, typically seeking returns in the low-to-mid teens. They can move faster than banks and often take asset classes banks won’t touch.
Major credit funds in ABF
| Fund | Focus Areas | Typical Check Size | Notes |
|---|---|---|---|
| Ares Management | Consumer, specialty finance | $25M-$500M | Large platform, multiple strategies |
| Magnetar Capital | Consumer, fintech, esoteric | $25M-$300M | Active in emerging asset classes |
| Victory Park Capital | Specialty lending, fintech | $15M-$200M | Strong in fintech credit |
| Waterfall Asset Management | Consumer, small business | $20M-$250M | Deep consumer expertise |
| Castlelake | Aircraft, specialty, distressed | $50M-$500M | Will look at complex situations |
| Cerberus Capital | Consumer, mortgage, commercial | $50M-$500M | Broad capability |
| Monroe Capital | Middle market, specialty | $15M-$150M | Accessible for smaller transactions |
| Fortress Investment Group | Broad specialty finance | $50M-$500M | Multiple dedicated vehicles |
| Angelo Gordon | Consumer, real estate, specialty | $25M-$400M | Credit heritage |
| Vervent (f/k/a BSI Financial) | Consumer servicing + capital | $10M-$100M | Combines servicing and capital |
Additional funds to consider
Large alternative asset managers with ABF programs:
- Apollo Global Management
- Blackstone Credit
- KKR Credit
- Carlyle Global Credit
- Blue Owl Capital
Specialty-focused funds:
- Owl Rock (middle market focus)
- Centerbridge Partners
- Oaktree Capital Management
- GoldenTree Asset Management
- Sound Point Capital
How credit funds evaluate opportunities
Credit funds look for yield-enhancing opportunities that meet their return targets. Key evaluation criteria:
| Criteria | What They Look For |
|---|---|
| Return profile | Total return consistent with fund mandate (typically 10-15%+) |
| Asset quality | Understandable collateral with predictable performance |
| Operator quality | Experienced management, clean track record |
| Structural protections | Appropriate covenants, reporting, control rights |
| Scale opportunity | Path to meaningful deployment, not one-off transactions |
| Exit path | Clear exit or refinancing route |
Approaching credit funds
What works:
- Advisor or counsel introductions (credit funds rely heavily on intermediary relationships)
- Conference meetings with prepared materials
- Clear articulation of why this fits their strategy
What to have ready:
- Detailed investment memo or term sheet request
- Historical performance data with static pool analysis
- Management team backgrounds
- Clear use of proceeds and business plan
- Your ask: structure, sizing, timeline
Red flags that turn funds away:
- Unclear underwriting standards
- High management turnover
- Previous lender issues or unexplained departures
- Overly aggressive projections
- Lack of operating history for the asset class
See also: Credit Funds and Private Capital for detailed evaluation criteria and term negotiation.
Insurance capital platforms
Insurance companies are major buyers of rated ABF tranches. Most invest through asset managers or dedicated platforms.
Major insurance capital platforms
| Platform | Structure Preference | Minimum Size | Notes |
|---|---|---|---|
| Apollo/Athene | Rated notes, private placements | $50M+ | Massive insurance liability pool |
| MetLife Investment Management | Investment grade tranches | $25M+ | Conservative, high quality focus |
| Blackstone Insurance Solutions | Rated and unrated structures | $50M+ | Flexible, growing platform |
| PIMCO | Rated tranches, liquid ABS | $25M+ | Also active in secondaries |
| Nuveen (TIAA) | Investment grade, long duration | $25M+ | Matches pension liabilities |
Additional insurance capital sources
Insurance company investment arms:
- Principal Global Investors
- Prudential Private Capital
- Voya Investment Management
- AIG Investments
- Lincoln Financial
Third-party managers with insurance mandates:
- Wellington Management
- Conning
- Western Asset Management
- Payden & Rygel
What insurance capital requires
Insurance placement adds complexity but provides access to large, long-duration capital:
| Requirement | Typical Standard |
|---|---|
| Rating | Investment grade (BBB- or better) required for most |
| Size | $25M+ to justify allocation work |
| Documentation | Full offering memorandum with risk factors |
| Legal structure | Delaware statutory trust or similar |
| Surveillance | Ongoing reporting to rating agencies |
Timeline impact: Insurance placement adds 4-8 weeks to your transaction for rating and allocation processes. Factor this into planning.
See also: Insurance Capital for detailed structuring requirements and placement strategies.
Back leverage providers
Back leverage providers offer financing to credit funds investing in ABF assets. These facilities enhance fund returns by adding leverage to the portfolio.
Bank structured lending desks
Major banks with active structured lending / prime brokerage desks:
| Bank | Typical Structures | Notes |
|---|---|---|
| Goldman Sachs | Repo, TRS, NAV facilities | Active across strategies |
| Morgan Stanley | Repo, margin lending | Strong in credit funds |
| JPMorgan | Repo, structured facilities | Large platform |
| Barclays | TRS, repo, bespoke | Flexible structuring |
| BNP Paribas | Repo, NAV facilities | Growing U.S. presence |
Specialty back leverage providers
| Provider | Focus | Notes |
|---|---|---|
| Natixis | Asset-backed lending | Active in ABF |
| Nomura | Structured repo | Growing presence |
| Societe Generale | TRS, repo | European relationships |
| MUFG | Term facilities | Conservative, reliable |
| Sumitomo Mitsui | Structured lending | Growing ABF focus |
Back leverage structure types
| Structure | Description | Typical Advance |
|---|---|---|
| Repo | Sale/repurchase of assets | 70-85% |
| TRS (Total Return Swap) | Synthetic exposure to portfolio | 70-90% |
| NAV facility | Loan against fund NAV | 50-70% |
| Asset-backed facility | Secured by specific assets | Varies by asset |
| Subscription line | Secured by LP commitments | 60-80% |
See also: Back Leverage for provider selection and structure comparison.
Matching capital to your needs
Capital source decision framework
| Your Situation | Best Capital Source | Why |
|---|---|---|
| Early-stage originator, small portfolio | Credit fund | Banks won’t engage; funds can be flexible |
| Established originator, seeking scale | Warehouse bank | Better pricing, larger facilities |
| Planning term ABS in 12-18 months | Warehouse bank | Banks provide bridge to takeout |
| Unusual asset class, no precedent | Credit fund | Banks require precedent; funds can pioneer |
| Seeking permanent capital, rated | Insurance platform | Long duration, stable |
| Fund seeking leverage on portfolio | Back leverage provider | Enhances fund returns |
Building capital provider relationships
Before you need capital:
- Identify 5-10 relevant providers across categories
- Understand their current strategy and recent activity
- Build relationships through conferences and introductions
- Share information proactively (performance updates, market views)
When you’re ready to execute:
- Prepare comprehensive materials
- Run a controlled process (not too broad, not too narrow)
- Get multiple term sheets to create negotiating leverage
- Move decisively once terms align
Cross-references
- Bank Balance Sheet for warehouse facility negotiation
- Credit Funds and Private Capital for fund evaluation
- Insurance Capital for rated placement strategies
- Back Leverage for leverage structure comparison
- Participant Directory for overview and other categories