SFA Research Corner: A Strategic Partnership: Banks and Private Credit Reshaping Asset-Based Lending

Growing partnerships between private credit sponsors and banks are reshaping lending. In 2024, nine major partnerships have enabled banks to leverage client relationships, originate bespoke transactions, and generate fee income without adding riskier loans on their balance sheet. Initially, private credit thrived when banks retreated. Now banks are stepping back in as private credit sponsors shift to lending via private asset-based finance (ABF).