RMAI Annual Conference | Las Vegas | February 10 - 13, 2025
SF Vegas | Las Vegas | February 25, 2025
Fintech Meetup | Las Vegas | March 10 - 13, 2025
Music Biz | Atlanta | May 12 - 15, 2025
There's been an expectation that Trump would seek to limit the powers of the CFPB, which could affect how specialty finance providers operate in terms of consumer lending and protections. This might involve restructuring or reducing the scope of the CFPB's authority, leading to less regulation in areas like consumer disclosures, arbitration agreements, and predatory lending practices. Most would say that this deregulation will be a net positive for the specialty finance space. I think it has pluses and minuses. It will likely lead to more deal flow for us – I imagine a whole host of innovative lending products popping up. Some will be good products, some will be predatory. So it is our job to increase our self regulation in this area and be ever more vigilant to ensure that the originators we work with are a net positive to society and are treating borrowers fairly.
It’s also expected that he’ll scale back parts of Dodd-Frank. This could mean less stringent oversight for banks. Banks may be able to be a bit more aggressive outside of core lending. Banks could re-enter the ABL space in a more meaningful way. This is great for us as banks typically won’t get involved in facilities smaller than $15M in size which is our sweet spot. What this would result in is an even deeper bench of larger lenders ready and waiting to refinance out our credit facilities at scale. We love this.Needless to say, we’ll be watching deregulation closely.
- Jillian
Quite a jump in interest outlays. To be fair, GDP growth has outpaced both of these lines since 2000.
Politics aside, given the population growth in the last several years, unemployment has remained fairly stable. Now the question is, will closing the borders sap our labor supply and cause too much downward pressure here?
A question investors have asked us since day 1 is, how do we source our deals? Our answer has always been "our network".
But that is vague and difficult to quantify. It's not convincing. Even if we point to numbers of contacts or deal intros or calls per year, that doesn't prove anything since it is not a relative metric.
Recently, I realized a better way to express the depth of our network. Instead of focusing on the front end (the network), let's look at the results from two different angles.
First, we recently saw an announcement for a closed deal that was right up our alley. It wasn't the fact that we did not see the deal that surprised me. It's that I realized it was the first announcement I had seen in a long time for a deal we did not know about the prior to close.Second, it currently seems as if 1 in 4 deals are introduced to us by more than one person now. That's a guess, but it used to be closer to 1 in 25.
These are two metrics that I want to start tracking much more closely in 2025.
- Conor
Investment success doesn’t come from “buying good things,” but rather from “buying things well."
It can be difficult to explain what we do at a cocktail party. Sometimes eyes glaze over at the first mention of "finance," but other times there's someone interested in learning more about our special (and let's be honest, fascinating) niche. One resource that our team has been sharing with friends & colleagues that want to learn more about Asset-Based Lending in particular is Nomura's Rise of Asset Based Lending.
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