AFA Asset Based Lending Fund - Institutional Class · NASDAQ:AMCLX
AFA Asset Based Lending Fund - Institutional Class — AFA Asset Based Lending Fund — Investor Presentation (June 2025)
34 slides from AFA Asset Based Lending Fund - Institutional Class's investor presentation, Jun 30, 2025
Slide 1: AFA Asset Based Lending Fund
AFA Asset Based Lending Fund 6/30/2025 For Institutional Investor Use Only. Not for Distribution to the Public 1 For Institutional Investor Use Only. Not for Distribution to the Public.
Slide 2: Investment Considerations and Disclosures
Investment Considerations and Disclosures Investors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This information is included in the Fund Prospectus and a copy may be obtained by calling 800-452-6804 or at www.alternativefundadvisors.com.
Slide 3: Table of Contents
Table of Contents I. Executive Summary II. The Case for Private Credit III. The Case for Asset-Based Lending IV. Portfolio and Performance V. Investment Process VI. Appendix 3 For Institutional Investor Use Only. Not for Distribution to the Public.
Slide 4: Executive Summary
Executive Summary 4 4 For ForInstitutional InstitutionalInvestor InvestorUse UseOnly. Only.Not Notforfor Distribution to to Distribution thethe Public. Public.
Slide 5: About AFA
About AFA Alternative Fund Advisors was founded in 2020 to provide advisors efficient and convenient access to private investments using interval funds. AFA partners with specialized sub- advisors for sourcing, research and due diligence of investment opportunities. 5 For Institutional Investor Use
Slide 6: A Private Credit Fund Focused on Asset-Based Lending
A Private Credit Fund Focused on Asset-Based Lending Potential Benefits of AFA Asset Based Lending Fund (AMCLX) Sourcing Premium Defined Collateral Diversification What We Do What We Do What We Do Invest through multiple lending Focus on platforms primarily Strategically allocate the platforms that
Slide 7: The Case for Private Credit
The Case for Private Credit 7 7 For ForInstitutional InstitutionalInvestor InvestorUse UseOnly. Only.Not Notforfor Distribution to to Distribution thethe Public. Public.
Slide 8: Private Credit is a Fast-Growing Asset Class
Private Credit is a Fast-Growing Asset Class Private Credit AUM Key Drivers of Growth $1.5T Historically attractive returns $1.0T Modest volatility Generally lower duration $300B Different borrower base 2010 2020 2025E 2010–2020 CAGR: 12.8% Sources: S&P/LCD. Treeline Capital Partners: “Private Credi
Slide 9: Potential for Higher Returns and Lower Volatility
Potential for Higher Returns and Lower Volatility October 1, 2015 – June 30, 2023 10% 8% 6% Core Bonds Annualized Return 4% High Yield Bonds Private Credit 2% 0% 0% 2% 4% 6% 8% 10% 12% Volatility Sources: Private Credit represented by the Cliffwater Directing Lending Total Return Index, Core Bonds r
Slide 10: The Case for Asset-Based Lending
The Case for Asset-Based Lending 10 10 For ForInstitutional InstitutionalInvestor InvestorUse UseOnly. Only.Not Notforfor Distribution to to Distribution thethe Public. Public.
Slide 11: Overview of Asset-Based Lending
Overview of Asset-Based Lending • Asset-based lending has been used by the regional banking system for years • Typically used by small to mid-sized asset-heavy businesses to cover short-term cash flow or working capital needs • Often, these businesses may struggle to tap other credit avenues • Loans
Slide 12: Asset-Based Lending vs. Cash Flow Lending
Asset-Based Lending vs. Cash Flow Lending Asset-Based Lending Cash Flow Lending Property, equipment, inventory, Collateral base for loan accounts receivables, etc. Company enterprise value Basis for determining Percentage of the value of assets or Multiple of borrower’s cash flow borrowing capacity
Slide 13: Asset-Based Lending is a Major Segment of the Corporate Debt Market
Asset-Based Lending is a Major Segment of the Corporate Debt Market Total US Corporate Debt Market as of 12/31/2022 23% 40% Asset-Based Loans Leveraged Cash Flow Loans High Quality Cash Flow Loans Corporate Bonds 22% 15% Sources: SFNet, Federal Reserve. All data as of 12/31/2022 13 For Institutional
Slide 14: ABL Has Performed Better in Times of Stress
ABL Has Performed Better in Times of Stress Gross Charge-off Rates: Corporate Loans vs. ABL 1.40% Post-GFC 1.20% 1.00% 0.80% Covid 0.60% 0.40% 0.20% 0.00% 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022 Bank Loan Gross Charge Off Rates ABL
Slide 15: Asset-Based Lending Has Shown Strong Recovery Rates
Asset-Based Lending Has Shown Strong Recovery Rates Recovery Rates in Illustrative Study 120% 100% 96% 80% 75% 60% 60% 52% 40% 20% 0% Asset Based Loans Middle Market Leveraged Loans 2nd Lien Loans Cash Flow Lending ABL Source: Callodine Commercial Finance. Fitch Ratings, Inc., Ultimate Recovery Rate
Slide 16: Investment Process
Investment Process 16 16 For ForInstitutional InstitutionalInvestor InvestorUse UseOnly. Only.Not Notforfor Distribution to to Distribution thethe Public. Public.
Slide 17: Portfolio Framework
Portfolio Framework Target Allocation Portfolio Segment Range* Examples Lending on physical collateral • Loans to retailers secured by inventory • Loans to commercial borrowers secured by equipment • Loans to mining companies secured by mineral deposits and equipment Diversified Asset-Based 40–70% L
Slide 18: Lending Platform Evaluation Process
Lending Platform Evaluation Process • Fit with fund strategy Strategy • Sourcing premium • Strength of asset-based underwriting • Yield return Return • Total return • Return stability • Downside risk • Team risk Risk • Operational risk • Financing risk • Market risk • Concentration risk • Liquidity
Slide 19: Fund Advisor and Sub-Advisor
Fund Advisor and Sub-Advisor Investment Advisor • Responsible for the fund’s investments, portfolio allocation and for the day-to-day management of the fund’s portfolio. • Partners with leading sub-advisors to assist with the sourcing, investment research and operational due diligence of investment
Slide 20: Ongoing Relationship with Lending Platforms
Ongoing Relationship with Lending Platforms • Regular calls and meetings with Access to co-investments platforms and new offerings • Ad hoc meetings around events or deal developments Connectivity Deal Flow Due Data Diligence Ongoing due diligence • Platforms provide on platforms and tailored data t
Slide 21: Portfolio and Performance
Portfolio and Performance 21 21 For ForInstitutional InstitutionalInvestor InvestorUse UseOnly. Only.Not Notforfor Distribution to to Distribution thethe Public. Public.
Slide 22: Key Portfolio Statistics
Key Portfolio Statistics As of July 1, 2025 11.3% 10.0% Yield to Maturity1 Distribution Rate2 $23 million 6.0% Median Loan Size3 Fund Leverage4 (1) For an individual bond or loan (each an “Instrument”), the yield to maturity is the overall interest rate earned by an investor who buys the Instrument
Slide 23: Allocation by Lending Platform
Allocation by Lending Platform As of July 1, 2025 ■ Diversified Asset Based Lending 70% Matterhorn 3% Small balance asset-based lending Asset-based lending to specialty finance Asset-based lending for natural Bastion 8% Nebari 1% companies resource sector Spouting Rock 7% Diversified asset-based len
Slide 24: Allocation by Lending Platform - Summary
Allocation by Lending Platform - Summary As of July 1, 2025 0.1% 12% Diversified ABL 18% Real Estate ABL Specialty Lending Opportunistic 70% Source: AFA. Allocations are shown as a percentage of gross assets excluding fund liquidity. This analysis looks through any fund holding to the underlying ass
Slide 25: ABL Collateral Exposure
ABL Collateral Exposure As of July 1, 2025 Financial Assets Physical Assets Trade Receivables 16.3% Commercial Real Estate (Development) 10.0% Loan Pool (Unsecured Consumer) 9.5% Commercial Real Estate (Construction) 8.9% Litigation (Ongoing) 7.7% Commercial Real Estate (Stabilized) 4.6% Loan Pool (
Slide 26: Allocation by Industry
Allocation by Industry As of July 1, 2025 13% Legal Services 13% Financial Services 11% Commercial Real Estate Development 10% Real Estate Management & Development 5% Consumer Discretionary Distribution & Retail 5% Capital Goods 5% Automobiles & Components 4% Energy 4% Consumer Services 4% Diversifi
Slide 27: Performance Summary
Performance Summary As of June 30, 2025 Cumulative Since Total Returns* Month YTD 1 YR 2 YR 3 YR Inception † AMCLX 0.80% 4.62% 9.30% 9.44% 8.49% 30.50% Credit Suisse Leverage Loan Index 0.80% 2.96% 7.50% 9.26% 9.54% 27.91% Bloomberg US Corp HY Bond Index 1.84% 4.57% 10.28% 10.36% 9.93% 15.81% Bloomb
Slide 28: Cumulative Performance
Cumulative Performance Cumulative Performance: June 30, 2021– June 30, 2025* 30% 30.50% AMCLX 27.91% CS Lvgd Ln 20% 15.81% BBG US-HY 10% 0% -3.25% BBG US-Agg -10% -20% Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Source: Bloomberg, AFA. The Bloomberg US Corporate High Yield Bond In
Slide 29: Summary
Summary A Private Credit Fund Focused on Asset-Based Lending (ABL) What We Do Invest through multiple Focus on platforms Strategically allocate the lending platforms that primarily dedicated to portfolio to include loans specialize in niche markets making asset-based loans secured by a diverse set o
Slide 30: Appendix
Appendix 30 30 For ForInstitutional InstitutionalInvestor InvestorUse UseOnly. Only.Not Notforfor Distribution to to Distribution thethe Public. Public.
Slide 31: Key Terms: AFA Asset Based Lending Fund
Key Terms: AFA Asset Based Lending Fund Structure Interval Fund Ticker/CUSIP Institutional Class: AMCLX / 00123V103 Accreditation No accreditation required Institutional Class: $1 million at the firm level Minimum Investment No minimum at the account level Management Fee 1.10% Net Expense Ratio(1) 1
Slide 32: AFA Founders' Experience Growing Fund Families
AFA Founders’ Experience Growing Fund Families Past performance is no guarantee of future results 2008–2018 1999–2007 $0 → $40B 1994–1998 $2B → $17B $1B → $30B 32 For Institutional Investor Use Only. Not for Distribution to the Public.
Slide 33: Team
Team Marco Hanig, Ph.D. Mike Jancosek Mike Dowdall, CFA® Alex Julian Managing and Founding Founding Principal, Principal, Chief Investment Director, Advisor Relations Principal, CEO Head of Distribution Officer Rafi Labourdette Sean Murphy Oxana Popova Terry Riordan Principal, COO and CFO Principal,
Slide 34: For Only. Not Distribution
34 34 For ForInstitutional InstitutionalUse Only. Not Investor Use for Distribution Only. to the Public. Not for Distribution to the Public.
AFA Asset Based Lending Fund — Investor Presentation (June 2025) on 6ix