AFA Asset Based Lending Fund - Institutional Class · NASDAQ:AMCLX
AFA Asset Based Lending Fund - Institutional Class — Alternative Fund Advisors — Conference Presentation (June 2025)
22 slides from AFA Asset Based Lending Fund - Institutional Class's conference presentation, Jun 25, 2025
Slide 1: Why Asset-Based Lending Belongs in Every Credit Portfolio
Why Asset-Based Lending Belongs in Every Credit Portfolio June 25, 2025 For investment professional use only. Not for distribution to the public.
Slide 2: Your Hosts
Your Hosts Alternative Fund Advisors Mike Dowdall, CFA® • Specializes in Asset-Based Chief Investment Officer Lending MBA, Booth School of Business • Manages $250 MM ABL Interval Fund Marco Hanig, Ph.D. Managing Principal Ph.D. in Economics, MIT For investment professional use only. Not for distribu
Slide 3: Disclosures
Disclosures The information presented has been obtained or derived from sources believed by AFA to be reliable. However, AFA does not make any representations or warranty, express or implied, as to the information’s accuracy or completeness, nor does AFA recommend that the attached information serve
Slide 4: Today's Topics
Today’s Topics I. How Asset-Based Lending Fits into the Credit Universe II. Segmenting the ABL Market by Collateral Type III. Using ABL in Client Portfolios IV. Why ABL Now? For investment professional use only. Not for distribution to the public.
Slide 5: How ABL Fits into the Credit Universe
How ABL Fits into the Credit Universe For investment professional use only. Not for distribution to the public.
Slide 6: Asset-Based Lending Overview
Asset-Based Lending Overview • Loans secured by specific and measurable collateral • Loan size is based on appraised value of collateral: (Loan-to-Value) • Funds primarily used for working capital or other short-term cash flow needs For investment professional use only. Not for distribution to the p
Slide 7: Fundamental Distinctions: Asset-Based Lending vs Cash Flow Lending
Fundamental Distinctions: Asset-Based Lending vs Cash Flow Lending Asset Based Cash Flow Lending Lending Defined assets Collateral Company enterprise value Basis for Multiple of borrower’s Loan-To-Value (LTV) loan size cash flow Source of Borrower cash flow and Pledged collateral repayment under str
Slide 8: Segmenting the ABL Market
Segmenting the ABL Market For investment professional use only. Not for distribution to the public.
Slide 9: There's a Vast Array of ABL Collateral Segments
There’s a Vast Array of ABL Collateral Segments Commercial Contractual Cash Assets Flows Inventory Legal settlements Equipment Music royalties Receivables Intellectual property Real Assets Loan Pools Airplanes Small business loans Infrastructure Consumer loans Mineral Deposits Residential mortgages
Slide 10: Asset-Based Loan Example: Inventory
Asset-Based Loan Example: Inventory Borrower Department Store Chain Purpose of loan Working capital Collateral for loan Merchandise inventory Size of loan or credit line Percentage of appraised merchandise liquidation value Covenants Regular monitoring of company performance and collateral value Sou
Slide 11: Asset-Based Loan Example: Real Estate Bridge Loan
Asset-Based Loan Example: Real Estate Bridge Loan Borrower Commercial real estate developer Purpose of loan Bridge from property purchase to project completion Collateral for loan Developable real estate in major urban area Size of loan or credit line Percentage of purchase price Covenants Full titl
Slide 12: Asset-Based Loan Example: Litigation Finance
Asset-Based Loan Example: Litigation Finance Borrower Litigation law firm Purpose of loan Working capital Collateral for loan Contingency payments on settled and ongoing cases Percentage of expected value of settlement payments Size of loan or credit line Higher advance rate for settled vs ongoing c
Slide 13: Using ABL in Client Portfolios
Using ABL in Client Portfolios For investment professional use only. Not for distribution to the public.
Slide 14: RIA Allocations to Private Credit Are Significant
RIA Allocations to Private Credit Are Significant 10% or more 19% 45% 7% to <10% 7% of RIAs have Private Credit allocation ≥ 5% Allocations to 5% to <7% 19% a Typical Client 4% to <5% 23% Portfolio 2% to < 4% 15% Less than 2% 16% Source: AFA 2024 RIA Private Credit Usage Survey For investment profes
Slide 15: RIAs Use Multiple Funds
RIAs Use Multiple Funds 4 or more funds 33% 58% of RIAs have 3 or more funds Number of 3 funds 25% Private Credit Funds Used 2 funds 22% 1 fund 16% Source: AFA 2024 RIA Private Credit Usage Survey For investment professional use only. Not for distribution to the public.
Slide 16: ABL is a Popular Diversifier to Direct Lending
ABL is a Popular Diversifier to Direct Lending Direct Lending 74% Asset Based Lending 42% Strategies Real Estate Debt 42% Deployed by Allocators Multi-sector 37% Specialty Finance 29% Structured Finance 29% Source: AFA 2024 RIA Private Credit Usage Survey For investment professional use only. Not fo
Slide 17: AFA Framework for Diversifying Private Credit Allocations
AFA Framework for Diversifying Private Credit Allocations Underwriting Type Cash Flow Based Asset Based Large Loans • • Loan Size Small Loans • • Source: AFA Perspectives, Optimize Your Private Credit Exposure For investment professional use only. Not for distribution to the public.
Slide 18: Why ABL Now
Why ABL Now For investment professional use only. Not for distribution to the public.
Slide 19: Why ABL Now?
Why ABL Now? Long-term Case Current Environment • Attractive risk-return profile • Chances of an economic slowdown • Diversification are higher than usual • Downside Protection • If ever there was a time to consider ABL, it’s now • Potentially lower sensitivity to economy (depending on segment) For
Slide 20: Q&A & Resources
Q&A & Resources For investment professional use only. Not for distribution to the public.
Slide 21: Learn More About AFA and Asset-Based Lending
Learn More About AFA and Asset-Based Lending https://alternativefundadvisors.com https://www.linkedin.com/company/alternative-fund-advisors For investment professional use only. Not for distribution to the public.
Slide 22: Thank You
Thank You For investment professional use only. Not for distribution to the public.
Alternative Fund Advisors — Conference Presentation (June 2025) on 6ix