The Eden Rock Asset Based Lending Fund, the latest fund launch from London-based Eden Rock Capital Management, now has more than USD100m in assets under management after experiencing no ne
The Eden Rock Asset Based Lending Fund, the latest fund launch from London-based Eden Rock Capital Management, now has more than USD100m in assets under management after experiencing no negative months during its first six months since launch.
The portfolio is wholly invested in asset-based lending funds that make direct, secured loans collateralised by physical assets or cash flows. The fund is currently allocated to 28 asset-based lending funds that Eden Rock believes are best positioned to take advantage of the current market environment.
The fund does not use leverage to enhance returns and the underlying managers also use little or no leverage. As these funds make private loans rather than participating in the capital markets, Eden Rock says, there is minimal mark-to-market exposure. The underlying funds have no exposure to private investment in public equity or asset-backed securities strategies.
Eden Rock says the performance of asset-based lending funds has been largely unaffected by recent market turbulence, and that the current environment in fact represents a significant opportunity as lenders have increased ability to dictate pricing and deal quality.
Liquidity constraints in the banking system, the pullback in securitisation activities and regulatory constraints all strongly favour enhanced returns and capacity in the asset-based lending sector, the firm says.
Eden Rock has been investing in asset-based lending funds since the firm was established in 2001 and currently manages six portfolios that are predominantly allocated to lending-based strategies.
