Reported by GlobalCapital Securitization, Howard Schickler, partner and Co-Chair of the Structured Finance and Securitization Department, shared his thoughts on the market demands for diverse funding during a DealCatalyst US Specialty Lender Finance conference. Howie stated, "What we've been seeing is that it's not just a one size fits all anymore. It's not like you have a bank facility or you have a private credit facility or you're just a securitizer. Everyone's doing everything."
In looking at different funding solutions, Howie noted the inclusion of different credit structures, mezzanine facilities and unitranche facilities. He added, "More and more people are looking to diversify the types of credit they have with the interest rate environment that we're in. They're not securitizing as often."
"Probably the biggest change I've seen in the last couple of years [is] funds are going out and financing their entire credit portfolio and looking into the banks or other institutions to provide credit based on the current net asset value of their portfolios."
"Specialty finance companies out for funding diversity," GlobalCapital Securitization, September 19, 2023