Alternative Fund Advisors Introduces the AFA Asset Based Lending Fund
- Editor
- Apr 2
- 1 min read
Whats Happening:
Alternative Fund Advisors (AFA) has renamed its AFA Private Credit Fund to AFA Asset Based Lending Fund (AMCLX). The fund focuses on loans to lower middle market borrowers served by boutique lending platforms. AFA believes this strategy may provide opportunities for attractive risk-adjusted returns in less heavily competed ecosystems.
Key Moves:
AFA Private Credit Fund renamed to AFA Asset Based Lending Fund (AMCLX)
Fund focuses on loans to lower middle market borrowers via boutique lending platforms
AFA aims to provide investors with diversification options in private credit portfolios
By The Numbers:
AFA Asset Based Lending Fund has $240 million in assets
The fund has been in operation since June 2021
AFA Asset Based Lending Fund is a closed-end interval fund
Key Quotes:
"Asset-based lending is increasingly viewed as the next frontier of private credit," says Marco Hanig, CEO of Alternative Fund Advisors.
"As investors seek to diversify their private credit portfolios, asset-based lending presents an attractive alternative to corporate direct lending."
"We believe that ecosystems of borrowers with specialized needs and lenders with unique expertise are less heavily competed and may provide opportunities for attractive risk-adjusted returns," Hanig added.
Bottom Line:
Alternative Fund Advisors' rebranding of its private credit fund to the AFA Asset Based Lending Fund reflects a strategic focus on asset-based lending in the lower middle market. By targeting less competitive niches and leveraging boutique lending platforms, AFA aims to offer investors attractive risk-adjusted returns and portfolio diversification opportunities in the evolving private credit landscape.
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