Asset-Backed Finance (ABF) is a specialized segment of private credit where alternative asset managers lend against diversified pools of physical or financial assets—such as data centers, commercial aircraft, and consumer loans—rather than relying on traditional corporate cash flows.
Evergreen funds are semi-liquid investment vehicles that allow individual retail investors to access private equity and private credit markets without the traditional decade-long lockups, offering periodic, capped windows to cash out.
NAV (Net Asset Value) loans allow private equity firms to borrow billions of dollars using their unsold portfolio companies as collateral, providing a controversial financial bridge to manufacture cash payouts for their investors when traditional corporate buyouts and IPO markets are frozen.
Special Purpose Vehicles (SPVs) are legally isolated corporate entities created by tech hyperscalers to borrow tens of billions of dollars from private credit markets to build AI infrastructure, allowing the parent companies to maintain operational control while keeping the massive debt off their official balance sheets.
Synthetic Risk Transfers (SRTs) are financial instruments that allow commercial banks to pay hedge funds and institutional investors to insure their riskiest loans, shedding regulatory risk weight without ever selling the underlying assets, thereby freeing up billions in capital to issue new loans under strict Basel III rules.
Continuation funds are specialized investment vehicles created by private equity firms to buy their own top-performing companies from their older, expiring funds, allowing the firm to hold the assets longer while giving original investors the choice to cash out or roll over.
The private credit secondaries market is a specialized financial ecosystem that allows institutional investors to buy and sell locked-up stakes in private corporate debt funds, injecting critical liquidity and price discovery into a massive, traditionally illiquid asset class.
A credit default swap (CDS) is a tradable financial derivative that functions like an insurance policy, allowing an investor to transfer the risk of a corporation or government defaulting on its debt to another party.
Private credit is a massive financial market where specialized non-bank investment firms lend billions of dollars directly to mid-sized and large corporations, bypassing traditional commercial banks entirely.
The high-yield leveraged loan market is a massive financial network where banks syndicate highly indebted corporate loans to institutional investors, allowing private equity firms to buy multi-billion dollar companies using mostly borrowed money.