Playbooks
Sourcing capital for your portfolio
Sourcing capital for your portfolio
Finding the right capital for your loan portfolio is one of the most consequential decisions you’ll make as an originator. The wrong partner creates friction that compounds for years. The right partner becomes a strategic asset that scales with you.
This guide introduces the capital provider landscape and helps you navigate to the detailed playbooks for each provider type.
The capital provider landscape
Your first decision is understanding who finances portfolios like yours. Different capital providers have different risk appetites, pricing models, and structural preferences. Matching your stage and asset class to the right counterparty type saves months of dead-end conversations.
Provider overview
| Provider Type | Typical Size | Pricing | Timeline | Best For |
|---|---|---|---|---|
| Banks | $25M-$500M+ | SOFR + 175-350 | 4-9 months | Established originators seeking lowest cost |
| Credit funds | $10M-$200M | SOFR + 250-500 | 2-6 months | Flexibility, speed, novel assets |
| Insurance | $50M-$500M+ | SOFR + 150-300 | 6-18 months | Long-duration, investment-grade adjacent |
| Family offices | $5M-$50M | 8-15% all-in | 4-12 weeks | Early stage, bespoke arrangements |
| Whole loan/forward flow | $10M-$100M+ | Price to par | 2-4 months | Capital-light model, balance sheet mgmt |
| Government/DFI | $1M-$50M | Below market | 6-18 months | Mission-aligned, subsidized capital |
Matching your stage to the right counterparty
| Your Stage | Portfolio Size | Best Targets | Why |
|---|---|---|---|
| Pre-launch / first 6 months | $0-$5M | Family offices, friends and family | Banks won’t look; need patient capital while you build track record |
| Early growth | $5-$30M | Family offices, smaller credit funds | Large enough for structured finance, too small for institutional |
| Institutional threshold | $30-$100M | Regional banks, credit funds, insurance asset managers | Competitive pricing available; multiple options |
| Scale | $100M+ | Money center banks, large credit funds, insurance companies | Full market access; optimize for terms |
Provider-specific playbooks
Each capital provider type requires a different approach. These detailed guides cover how to find them, what they’re looking for, how to pitch, typical terms, and relationship management.
Approaching banks for warehouse capital
Banks offer the lowest cost of capital but require extensive diligence and long timelines. This guide covers:
- Money center, regional, and community bank differences
- Finding the right contacts and getting warm introductions
- Understanding bank economics and pricing floors
- The bank diligence process and timeline
- Common mistakes that kill bank deals
Working with credit funds
Credit funds move faster and offer more flexibility than banks. This guide covers:
- ABF-focused vs. multi-strategy vs. emerging manager funds
- When to choose a fund over a bank
- Understanding fund economics and return requirements
- Negotiating with credit funds
- Managing the fund relationship
Accessing insurance capital
Insurance companies provide patient, long-duration capital for the right assets. This guide covers:
- Direct insurance relationships vs. insurance asset managers
- Duration matching and NAIC requirements
- Structuring for insurance capital
- The extended timeline for insurance relationships
- Building and maintaining insurance partnerships
Family offices as capital providers
Family offices can be exceptional first-facility partners but are hard to find. This guide covers:
- Why family offices are invisible and how to find them
- What family offices look for in ABF investments
- Pitching family offices effectively
- Structuring for family office requirements
- Managing relationship-intensive partnerships
Whole loan sale and forward flow
Selling loans offers a capital-light alternative to retention. This guide covers:
- When to sell versus retain
- Whole loan sale pricing and process
- Forward flow mechanics and economics
- The buyer universe and how to find them
- Negotiating sale and forward flow terms
Government programs and DFI capital
Government capital is the lowest-cost option for qualifying originators. This guide covers:
- CDFI programs and certification
- SBA lending programs (7(a), 504, Community Advantage)
- State and local economic development programs
- Development finance institutions
- Impact reporting requirements
Direct outreach vs. placement agents
One of your first tactical decisions is whether to run your own capital raise or engage a placement agent.
When to run your own process
- You have existing relationships. A warm introduction is worth more than any placement agent.
- The deal is straightforward. Standard assets with clear track records don’t need much explanation.
- You want to build direct relationships. Every raise is an opportunity to expand your network.
- You want to avoid placement fees. At 0.5-2% of committed capital, fees can be significant.
When placement agents earn their fee
- You lack capital markets relationships. A good agent has 50+ relationships and knows who’s active.
- Your asset class needs explanation. Novel assets require education.
- You need to run a competitive process quickly. Agents can engage multiple providers simultaneously.
- You want access to specific providers. Some providers only look at agent-introduced deals.
Fee structures
| Structure | Typical Range | When It Works |
|---|---|---|
| Retainer + success fee | $10-50K retainer + 0.5-1% success | Complex deals, longer timelines |
| Success fee only | 1-2% of committed capital | Straightforward deals |
| Hourly/advisory | $300-600/hour | Advisory without formal engagement |
Preparing for a capital raise
Most capital raises fail not because of the deal, but because the originator wasn’t ready.
Timing your approach
Start conversations 6-9 months before you need capital:
- Initial outreach and screening (1-2 months)
- Diligence (2-4 months)
- Documentation and closing (2-4 months)
- Buffer for unexpected delays
Seasonal considerations: Bank credit committees slow in late December and August. Fund deployment pressure peaks at quarter-end.
Data room essentials
Tier 1 (screening materials, ready in 24 hours):
- Executive summary / teaser (2-4 pages)
- Management presentation (10-15 slides)
- Loan tape (current, clean, complete)
- Static pool data (cohort performance by vintage)
- Underwriting guidelines
Tier 2 (diligence materials, ready within 1 week):
- Financial statements (audited if available, reviewed at minimum)
- Sample loan files (5-10 representative files)
- Servicing policies and procedures
- Legal structure documentation
- Management bios with full employment history
Internal readiness assessment
Before engaging capital providers, honestly assess:
Are you ready for diligence?
- Can you produce a clean loan tape within 24 hours?
- Do you have static pool data showing cohort performance?
- Are your underwriting guidelines documented and consistently applied?
Is your legal structure sound?
- Is your origination SPV (or path to one) clear?
- Do you have all required state licenses?
- Any pending litigation or regulatory actions?
Can you manage a facility?
- Systems to track pledged versus unpledged assets?
- Can you produce borrowing base certificates?
- Management bandwidth for a 3-6 month capital raise?
If any answer is “no,” fix it before you start outreach.
Working conferences and industry events
Conferences are where relationships start.
The ABF conference circuit
ABS East (Miami, October) is the main event. Over 8,000 attendees including all major banks, credit funds, and investors. If you attend one conference per year, make it this one.
ABS West (Los Angeles, February) is smaller and more intimate (2,000-3,000 attendees). Better for deepening existing relationships.
SFVegas (Las Vegas, February) is structured finance focused with strong capital provider attendance.
IMN conferences are asset-class specific: Consumer ABS, Equipment Finance, Auto Finance. Smaller events mean easier access to decision-makers.
Making meetings productive
- Pre-schedule meetings 3-4 weeks out. Calendars fill early.
- Lead with what matters to them. Portfolio, performance, why you’re a fit for their mandate.
- Close with a clear next step. Specific action, not “we’ll be in touch.”
- Follow up within 48 hours. Send materials while the conversation is fresh.
Cross-references
- Preparing your data room covers data room organization in detail
- The originator’s readiness assessment helps you evaluate whether you’re ready for a capital raise
- Choosing the right structure explains warehouse vs. forward flow vs. term ABS
- Negotiation strategy covers term sheet negotiation in depth
- Your loan tape details tape requirements and common data quality issues
- What capital providers care about provides the capital provider’s view of your deal