News Analysis

Asset-Backed Finance

Rare multi-lender SBA securitisation prints

Alternative lenders reshaping small business finance amid search for liquidity solutions

Community Bank & Trust, a US regional lender, has completed a rare multi-lender securitisation of unguaranteed portions of SBA loans. The U$118.9m transaction is seen as a catalyst for future small business ABS, as it provides access to capital markets for institutions that lack the scale to securitise independently.

Community Bank & Trust worked with Falcon Bridge Capital and fellow SBA-approved lenders to execute the SOUP 7(a) Trust 2025-FBC1 transaction earlier this month. The deal, which received a BBB (high) rating from Morningstar DBRS, represents only the second time multiple lenders have combined their unguaranteed loan interests in a single securitisation.

"We are proud to play a participating role in advancing securitisation solutions that give SBA lenders the capital flexibility they need to serve America's small businesses," says Jeremy Gilpin, president and chief executive of Community Bank & Trust. "This second issuance represents not only an important milestone for our institution, but also for the broader SBA lending market."

The pooled structure allows participating banks to retain servicing responsibilities and ownership certificates while selling senior rated tranches to institutional investors, providing what the bank describes as a balance between capital relief and relationship retention.

For Gilpin, the repeat transaction signals that pooled securitisations could become a sustainable funding channel for community banks, which have traditionally lacked the loan volumes required for standalone deals. Previously, such capital markets executions were limited to the largest SBA originators.

"When you have the first one, it's a one-off. When you have more than one, it becomes practice," Gilpin says, adding that the structure demonstrates the organisation’s commitment to make such deals work for community banks.

Growth potential relies on scale

Despite rating more than U$14bn in non-SBA small business lending ABS over the past decade, a recent KBRA report suggests that the asset class remains undersized relative to its potential. Moreover, much of the current activity occurs in private markets, as Maxim Berger, a senior director at KBRA, explains.

For Berger, the growth potential relies in larger household names entering the market - particularly those engaged in embedded finance - as well as consolidation among smaller lenders that would enable them to reach the scale necessary for securitisation. He also suggests that a chicken-and-egg situation is part of what constrains development in the market, as more public issuance would be fundamental to establish pricing benchmarks and attract institutional capital.

Still, the broader SBL sector is undergoing fundamental shifts, with nonbank and fintech lenders capturing an increasing share of originations. Alternative lenders' portion of small business loan applications rose to 24% in 2024, up from 17% in 2020, according to KBRA figures.

The migration from traditional banks accelerated after 2022, when rising interest rates and inflation prompted tighter underwriting standards. New capital requirements under Current Expected Credit Losses (CECL) accounting rules also made SBL more expensive for banks.

"The fallout in 2023 of several regional banks caused a scare, which caused even further tightening, particularly around unsecured and non-real estate small business lending," says Berger. "That tight underwriting by banks drove more originations to these specialty finance lenders."

Alternative lenders distinguished by speed

He explains that alternative lenders distinguish themselves through speed, by employing data-driven underwriting that taps real-time sales information from accounting software or e-commerce platforms at speed. "This kind of continuous access is giving an edge to some of these lenders, in that they're able to better underwrite upfront, but also monitor the health of these businesses on a go-forward basis."

With the pull-back, higher-quality borrowers started to migrate to nonbank lenders. "A lot of these specialty finance lenders are getting higher credit quality borrowers that the banks themselves aren't lending to," Berger said, noting average loan sizes have grown to above U$100,000.

The convenience comes at a price, however, with specialty finance products typically carrying higher costs than government-backed SBA loans. On the other hand, SBA loans' lower rates, longer terms and built-in modification flexibility give businesses "more of a fighting chance at a downturn," as Gilpin explains.

For Gilpin, the SOUP 7(a) Trust 2025-FBC1 transaction comes at this moment as a catalyst for future small business ABS transactions, as it bridges a gap in terms of access to capital markets for institutions that lack the scale to securitise independently. “We just hope that this transaction shows lenders that securitisation is not out of reach for a community institution, that it is well within reach and there are resources out there that can make this happen,” he concludes.

Marina Torres

23 October 2025 15:36:41

News Analysis

Asset-Backed Finance

SCI In Focus: Building teams for a new era

Talent strategy a competitive differentiator in an evolving securitisation market

The saying goes that there’s no ‘I’ in team, but there is in the core values for teams in today’s structured finance market: interdisciplinarity, international coverage and innovation. Firms across the ecosystem, from rating agencies to law practices, are rethinking how their teams need to be built and what expertise the market now demands.

The classic model of single-asset speciality teams or regionally siloed pods is being replaced by cross-border and cross-sector groups equipped to handle the likes of ABF, esoteric assets and the convergence between securitisation and private credit. Such a shift reflects the current times: new asset classes, new structures, new participants and new jurisdictions require new types of teams.

Squire Patton Boggs’ (SPB) recent hiring of director Nathan Menon and partners Ranajoy Basu and Trish O’Donnell is a recent example. The trio, all previously colleagues at Reed Smith, have been reunited to spearhead a new structured finance practice at SPB. The move comes amid similar shifts seen elsewhere, as KBRA last year realigned its own in-house expertise with market activity and need - redeploying ABS talent into fund finance, underscoring the convergence between the disciplines.

Moving from regional silos to global builds

Structured finance teams were traditionally built market by market. Firms expanded by shifting people from established jurisdictions into new ones, replicating the same playbook. However, that model is looking increasingly outdated.

Private credit has become a central pillar of structured finance just as demand for real-economy financing has accelerated – in sustainability, data and tech, healthcare, infrastructure and defence. As those sectors blur the boundaries between asset classes and geographies, expertise now needs to stretch across securitisation, fund finance and private credit structures.

“The days of having teams that operate purely within one jurisdiction or one product are behind us,” says Basu. “You need to think globally – clients are operating globally, and the issues they face are the same whether they’re based in London, Mumbai or New York.”

That shift is reflected in the way the SPB team works. “The three of us will be driving a cross-border international private capital and structured finance offering,” Basu continues. “Gone are the days when you can simply have a siloed regional firm with its own practices.”

Within weeks of joining, the team was already working across London, continental Europe, the Middle East and Australia. “The problems my clients in the UK are facing are the same as those my clients in India are facing,” Menon adds. “Having Ranajoy leading this as a global effort was a huge selling point.”

The team’s early work reflects a broader reality of liquidity being fragmented - and deals therefore needing to include collateral from multiple jurisdictions. “No one jurisdiction necessarily has enough liquidity to sort out all its financial needs,” Basu explains. “What we’re seeing, and from an investor perspective too, is appetite to take advantage of different financial mechanics that are cross-border.”

India’s growing openness to foreign direct investment is one example, linking with US and Middle Eastern capital. Fund finance securitisation is another.

“We’re seeing that theme rise to prominence at conferences and in live transactions,” Basu notes. “It’s a sign of how private credit and structured finance are converging.”

That trend is being seen across the market. As a recent commentary from Ashurst notes, fund finance securitisations are emerging from the shadows with “the rise of private credit and growing investor appetite now [providing] an ecosystem where the securitisation of fund finance receivables may assist both fund finance and structured finance participants to meet their strategic objectives.”

The EU’s regulatory rethink, alongside insurer appetite for structured credit – and specifically ABF – has only accelerated that shift.

As SCI has previously reported, the growth of the ABF market is increasingly dependent on the right talent. Talent strategy is fast becoming a competitive differentiator, as firms expand or realign teams to capture new opportunities across asset-backed finance and risk transfer.

Why now – and why SPB?

SPB hasn’t historically been a structured finance powerhouse – which, for the trio of new joiners, was part of the attraction. It offers room to grow a practice while plugging into a firm with a large global network and strong corporate, M&A and private equity capabilities.

The firm itself is in expansion mode. It has also recently brought in Gabriel Yomi Dabiri as global head of private credit and direct lending, Monica Gogna as global head of financial services regulatory and Bradley Harris to its ABL team - with more hires expected internationally.

For SPB, the combination of expertise and geographical reach fills a gap in its practice. “This is a chance to be at the forefront of where the market is going,” Basu says. “We’re trying to be agile and adapt to whatever is happening in the capital markets – to build something that aligns with where we’re seeing activity.”

Adaptability, O’Donnell emphasises, is becoming a core skillset for any structured finance practice wishing to stay relevant. In a market with an uptick in hybrid deals and evolving funding channels, more than ever before practitioners need to be able to work across asset classes, public and private markets, and transaction types.

Data centres and AI are at the top of SPB’s to-do list. “The more AI gets used, the more it develops – it’s a one-way street,” says Menon, highlighting the structural demand for data centre ABS. The acceleration of digital infrastructure financing is just one example of how real economy assets are shaping pipelines.

Fintech and blockchain are firmly on the radar too, according to O’Donnell, alongside life sciences, healthcare and defence – sectors that have long seen activity in the US and are now gaining traction in Europe.

Sustainability is another important theme for the new team. “The need for finance towards sustainability isn’t going to disappear,” Basu says. “We’ll continue to grow that practice, especially as sovereign wealth funds, donor governments and private equity funds mobilise capital for environmental and social causes.”

For all the variety of real economy opportunities on the horizon, the core theme is clear: innovation and impact. “The need for funding isn’t reducing anytime soon,” adds Basu. “We’re still excited about the positive impact finance can make. Securitisation can be a force for that – there’s a real buzz about it being used again as a tool for financing.”

Pursuing a collaborative approach

What some firms dismiss as ‘hand-holding’ in partnering with first-time issuers or new private credit investors, the SPB team actively embraces. Guiding clients through their first or more complex transactions in the ABS, SRT or ABF space can sometimes feel like a chore. But with a steady influx of new participants, that support can’t be an afterthought – it’s the work of building the ABF market itself.

“It’s not just part of the job; it is the job,” says O’Donnell. “When we’re representing issuers and borrowers, especially those new to the market, I’m expecting to provide a lot of support. Clients who ask for that really appreciate it – they see you as a partner.”

For Basu, that element of partnership is crucial. “We’re seeing more private and public sector cooperation – development and infrastructure finance are great examples. The demand for capital is huge, and the opportunities are equally significant.”

He adds: “We want clients to see us as part of their growth journey. In five years' time, we want to be at the forefront of innovation and legal support in a changing market. Our goal is to build a team that will become leaders in their own right.”

Innovation is what will ultimately decide who leads the next phase of the ABF market’s evolution. As practitioners such as Nicole Byrns have pointed out, the sector increasingly needs tech-fluent entrants who can translate between data and dealmaking.

It’s about embracing new perspectives that can reimagine how things can be done. With more esoteric issuance, fund finance deals and cross-border structures on the horizon, the firms that prosper will be those that can build genuinely interdisciplinary teams.

Claudia Lewis

24 October 2025 13:25:34

SRT Market Update

Capital Relief Trades

Polish lender closes SRT backed by green infrastructure

SRT market update

PGGM and mBank have successfully closed a new SRT, the third between the two parties in three years. The deal references a PLN 3.8bn corporate loan portfolio, primarily secured by renewable energy assets. This marks the first large-scale project finance SRT executed in the CEE region.

The transaction is structured as a static reference portfolio and is executed through a CLN issued by mBank. The protection specifically covers the PLN 831m first loss tranche, equating to a thickness of 22% of the portfolio, and a weighted average life of 7.5 years. Regarding amortisation, the structure is pro-rata, but includes a switch-to-sequential mechanism.

Approximately 75% of the reference portfolio is collateralised by project financing for wind farms and photovoltaic installations. This high concentration in green infrastructure aligns with mBank’s strategic sustainability agenda while supporting the accelerating energy transition across the CEE region.

mBank’s first SRT was completed in March 2022, as reported by SCI.

Dina Zelaya

22 October 2025 13:55:13

SRT Market Update

Capital Relief Trades

Landmark Romanian SRT completed

SRT market update

Raiffeisen Bank has executed a €1bn synthetic securitisation referencing a portfolio of unsecured personal loans, in partnership with Munich Re, SCI learns.

The transaction falls under the bank’s established ROOF programme (Project ROOF Romania 2025). It marks the first SRT backed by retail exposures in the Romanian market and is the largest of its kind to date.

The €1bn portfolio – equivalent to RON 5.05bn, remains on Raiffeisen Bank’s balance sheet and is structured into senior, mezzanine, and junior tranches. The credit risk of the mezzanine tranche has been transferred to Munich Re via a financial guarantee issued through its specialty insurance arm, Great Lakes Insurance SE.

The transaction is expected to deliver an initial capital benefit of approximately 110bps on the CET1 ratio and 220bps on the MREL ratio at consolidated group level.

KPMG acted as financial advisor, with Raiffeisen’s in-house team and Munich Re’s Great Lakes branch jointly leading execution.

The deal marks a significant step in developing Romania’s SRT market, expanding investor participation and broadening asset class diversity across the region.

“This transaction further strengthens our longstanding relationship with Raiffeisen Bank, with whom we have partnered on successful SRT transactions across multiple jurisdictions” states Michael Heckl, head of Irish Branch of Great Lakes Insurance.

Nadezhda Bratanova

23 October 2025 17:08:48

News

Asset-Backed Finance

MPOWER closes debut private student loan securitisation

US fintech plans programmatic private deals alongside annual public ABS issuance

MPOWER Financing has completed its first private securitisation, a U$100.5m transaction including refi loans alongside its core international student lending. The transaction is part of MPOWER’s strategy to move beyond public ABS issuance in the student loan market.

The private deal represents what cfo Jatin Rajput describes as a natural evolution of the firm’s capital markets strategy. The decision came after some of the investors who participated in MPOWER’s public ABS showed interest in working together in private transactions. “In some cases, private financings offer some more flexibility on the structure and on timing,” Rajput tells SCI.

The shift towards private placements also reflects growing demand from insurance companies seeking structured finance exposure. "As we're seeing, there is a lot of insurance money coming into private credit. They prefer structured transactions, and we have investors who can take different parts of the capital structure,” he adds.

MPOWER, which specialises in loans to international graduate students, structured the transaction similarly to its previous public ABS deals. The securitised pool comprises US dollar-denominated, fixed-rate loans to students pursuing primarily STEM and business degrees at top US and Canadian universities.

The transaction includes a small portion of refi loans - a segment that, according to Rajput, will comprise a larger share of future deals.

The deal follows MPOWER's US$313.2m second public securitisation, announced in May, which achieved single-A ratings on its senior tranche from DBRS and KBRA. Rajput indicates that the plan going forward is to maintain issuance of at least one public securitisation annually, while supplementing this with private financings.

"We definitely want to do at least one public market deal every year. We also want to supplement that with private financings with investors who like our collateral/risk-adjusted return,” he says.

MPOWER is also exploring forward flow agreements as part of its future strategy. "We're looking at doing more forward flow whole-business loan sale type of transactions in MPOWER down the road,” Rajput confirms.

The transaction includes loans to students at Canadian universities, which account for roughly one-fifth of MPOWER's originations, at a time when Canada's post-secondary sector faces mounting pressures from constrained provincial funding, declining international enrolments and federal student caps that have forced some institutions to close programmes and reduce staff.

Rajput says MPOWER focuses exclusively on top Canadian institutions to mitigate these risks. "We only look at the top 30-50 Canadian schools. Generally, these schools are fairly established universities. They've been around for a long time," he says.

In the US, MPOWER is also eyeing the domestic graduate lending market following recent changes to federal funding that reduced the availability of Grad Plus loans, such as the OBBB (One Big Beautiful Bill). "It is a fairly big market. That also gives us good diversification to our business," Rajput concludes.

Marina Torres

21 October 2025 07:00:18

News

Asset-Backed Finance

ABF Deal Digest: GCI vets helm new container platform

A weekly roundup of private asset-backed financing activity

AB CarVal launches evergreen fund

AllianceBernstein has launched an evergreen ABF fund, the AB CarVal Credit Opportunities Fund. The new fund marks the firm’s latest expansion into semi-liquid private credit and follows on from its US interval fund launched late last year. The new ABF fund similarly aims to outperform high-yield bonds over time, with lower volatility and correlation to public markets.

Domiciled in Luxembourg, the fund will be managed by co-heads of structured credit and private credit John Withrow and Roger Newkirk, alongside AB CarVal managing principals James Ganley, Jody Gunderson and Lucas Detor. The fund will invest globally across asset-backed and specialty-finance opportunities spanning corporate, structured credit and real asset exposures.

KKR debuts container financing platform

KKR has launched Galaxy Container Solutions, a global marine container leasing and financing platform, in partnership with a team of industry veterans. Galaxy will be owned by KKR-managed credit funds and accounts, which are committing US$500m to the company via KKR’s asset-based finance (ABF) strategy.

Galaxy will provide a full suite of container leasing and financing solutions to shipping companies around the world, enabling flexible, capital-efficient access to the container fleets that keep global trade moving. Supported by KKR’s stable capital base and a management team with decades of experience, the company is well positioned to meet customer needs for fleet growth and balance sheet optimisation.

Galaxy is helmed by ceo Jeffrey Gannon and coo Adrian Dunner, who have successfully launched and scaled multiple container leasing companies. Most recently, Gannon and Dunner co-founded and led Global Container International (GCI), the seventh largest lessor of marine containers globally at the time of its sale to Triton International. They will be joined by former GCI cfo Stephen Controulis, along with a seasoned team of specialists across container leasing management, operations, finance and sales functions.

Kinetic inks forward flow deal

Kinetic Advantage has entered into a strategic partnership with Carlyle via an investment and multi-year forward flow facility to support origination of automotive floorplan financing. The transaction was led by Carlyle’s private fixed income arm, Carlyle ABF, which has deployed approximately US$8.5bn since 2021 and manages more than US$9.5bn in assets under management as of June 2025.

The deal enables the independent floorplan financier – which is backed by Altamont Capital Partners - to scale its capacity and bring more dealer financing innovation to the US market, enhancing its service to independent auto dealers. Stephens Inc served as exclusive financial advisor to Kinetic Advantage on the transaction.

Claudia Lewis, Corinne Smith

22 October 2025 12:58:34

News

Asset-Backed Finance

Back leverage easing European CRE refi crisis

Debt funds help cut funding gap by 18% to €74bn, but regional differences remain

The European commercial property refinancing crisis is slowing dissipating, with borrowing costs stabilising and an influx of alternative lenders contributing to narrow the funding gap. The European debt funding gap (DFG) has fallen by 18% to €74bn for the 2026-2028 period, down from the €90bn projected for 2024-2026 in 2023, according to AEW's latest report on European real estate debt markets.

"Our revised estimate of €74bn for the European real estate debt funding gap confirms that refinancing challenges have eased. With both prime property yields and borrowing costs stabilising over the past year, debt capital is becoming increasingly attractive for equity investors - particularly in the eurozone, where swap rates are more favourable than in the UK,” comments Hans Vrensen, head of research and strategy for Europe at AEW.

AEW now estimates that 5.8% of CRE loans originated from 2017-2024 are at risk of default, down from 7.1% in October 2024. Expected losses have decreased to 1.6% from 1.8%, which is significantly lower than the 2.3% reported for European CMBS losses during the financial crisis.

Retail-backed loans face estimated losses near 5% (more than three times the overall average), however, due to significant declines in collateral values since 2018. Office-backed loan losses are projected at 1.9%, while all other sectors show estimated losses well below 1%.

Office-backed loans account for 41% of the total €74bn European DFG, followed by retail loans at 21%, residential loans at 19% and other sectors at 18%.

Alternative lenders are stepping in

The reduction of the DFG has been driven primarily by debt funds and the increased use of back-leverage structures. AEW research shows that debt funds have stepped in strongly in the market, with an estimated 43 non-bank lenders holding €110bn in CRE debt by mid-2025.

These alternative lenders are increasingly using back leverage, a practice that has "gained momentum in 2025, facilitating the refinancing of maturing legacy loans with high LTVs,” according to the report.

For Vrensen, this indicates that lenders are willing to take on more risk. "This demonstrates an increase in both lenders' and borrowers' confidence and the ability of the former to take on more risk. This emerging revival is expected to trigger a recovery of collateral values securing legacy loans,” he says.

However, he warns that increased reliance on back leverage might create layers of debt-on-debt in the long run. "Despite being part of the short-term solution, it is unclear how the growth of less regulated debt funds and debt-on-debt providers might affect the long-term systemic risk across Europe's financial markets,” Vrensen observes.

Regional differences

While most European markets are improving, France stands out with a refinancing challenge. An estimated 20% of French loans originated during 2017-2024 will face refinancing challenges - the highest share among the 20 countries analysed and an increase from last year's estimate of 18%.

Overall, only 12% of maturing European real estate loans in 2026-2028 will face a refinancing challenge, down from 13% estimated in October 2024. Germany's situation has improved significantly, with its DFG falling from 20% to 16%.

Spain and Italy have also improved, coming in at an average of 10% and 8% respectively. The UK remains at the lower end with 6%.

Marina Torres

24 October 2025 11:02:17

News

Capital Relief Trades

SCI Risk Sharing Awards: North American Arranger of the Year

Winner: Scotiabank

Scotiabank demonstrated excellent arranging and structuring skills with the successful execution of the US$7bn Cabot 2025-1, one of the largest and tightest-priced North American synthetic risk transfer (SRT) trades of the year. For building robust in-house capabilities to support SRT transactions with a high degree of efficiency and transparency, as well as establishing strong global market connectivity, the bank is North American Arranger of the Year in SCI’s 2025 Risk Sharing Awards.

“The Scotia Cabot transaction was a bright spot of organisation, relationship orientation and transparency that was rarely seen in a year of otherwise chaotic issuance. Negotiations were commercial and reasonable, while securing a positive outcome for both the bank and investors. Consistent communication and organisation allowed me as an investor to effectively run my internal approval process without surprises and achieve the anticipated outcomes,” noted one asset manager in an investor testimonial.

Executed in January 2025, Cabot 2025-1 marks Scotiabank’s return to the SRT market following its July 2023 debut with the Balboa transaction, arranged by BNP Paribas. Despite the similar reference portfolio (large corporate loans), Cabot marked a significant revamp for Scotiabank - with the bank’s newly formed Structured Solutions Group (SSG) not only advising management on this strategic transaction, but also running the entire deal process in-house. SSG utilised favourable market conditions to structure a more balanced risk portfolio, negotiate more market standard documentation and execute at one of the tightest execution levels - if not the tightest - seen for this asset class, risk profile and terms.

Cabot was marketed to a wide range of large asset managers, SRT specialists, hedge funds, CLO investors/managers, pension plans and insurers across North America, the UK and the EU. Notably, SSG worked with innovative investors in the insurance space and overcame internal hurdles in a short timeline to ensure that this growing investor class is brought onto Scotiabank’s SRT platform.

To ensure a successful engagement, SSG ran a clearly communicated deal process, with multiple stages allowing investors to properly assess and deliver well-informed bids for the transaction. The group not only provided initial guidance around pricing and terms, but it also provided clear guidance on final pricing and allocation level that remained unchanged at execution. This yielded highly positive feedback from investors, even from some who did not make it to the final stage, suggesting that there is likely to be strong support for future Scotiabank SRT issuances.

“We were particularly impressed by the high-quality execution team at [Scotiabank], whose clear communication and transparent processes made the entire experience seamless and efficient. Their professionalism and diligence instilled a sense of trust throughout the transaction,” another asset manager confirmed in a second investor testimonial.

They continued: “Furthermore, we commend Scotiabank's commitment to taking a long-term view by establishing ‘on-market’ documentation, facilitating future repeated issuances. This strategic approach not only strengthens their position in the market, but also encourages ongoing investor engagement.”

Placed with seven new and six repeat investors, Cabot was ultimately upsized from US$5bn and priced at SOFR plus 6.5% (0%-7%), closing within a tight three-month timeline and delivering excess capital relief beyond that sought by management. Additionally, to address regulatory concern around investors’ use of bank leverage, Scotiabank introduced a process to improve monitoring of the use of repo financing on Cabot, with the aim of ensuring the risk does not re-enter the Canadian banking system.

Furthermore, having been optimised for both IRB and standardised RWA, the deal’s reference portfolio and terms provide flexibility to manage benefits both above and below the RWA floor to maintain transaction efficiency through life and different RWA constraints.

Scotiabank’s SRT platform currently references circa US$16bn in large corporate loan notional. The programme is a key enabler of the bank’s originate-to-distribute strategy, whereby it can continue growing within its risk limits and enhance return levels.

Honourable Mention: ATLAS SP

The successful execution of Merchants Bank of Indiana’s US$628.87m MBHC 2024-C2 healthcare CRT in September 2024 showcased the benefits of working with an experienced arranger, given that a broad range of possible flavours of risk transfer and structural options were considered for the third collaboration between ATLAS SP and Merchants.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

24 October 2025 17:57:31

News

Capital Relief Trades

US regionals line up to do deals

The small US regional bank CRT market is hotting up

EJF Capital is readying seven or eight smaller US regional banks to issue CRT transactions to the market value of US$500m, representing an aggregate reference pool of around US$3.25bn, in the next 12-18 months, it says.

“I think we will see a lot more deals from regional issuers. We’re seeing a lot of reverse inquiries and have a lot of interest,” says Neal Wilson, co-chief executive officer & co-chief investment officer.

The US private credit firm has become the doyen of the arranger/investors in the small regional bank risk-sharing space over the last couple of years. It has brought US$5bn Texan bank Third Coast to the market with two innovative deals in H1 of this year.

In addition, it last year brought Pinnacle Bank to the market with a deal that also broke new ground in terms of the asset class.

Indeed, there have been six CRT deals by small issuers with assets of less than US$50bn since the US market broke open just over two years ago, and EJF has been the arranger/investor on four of them.

“We are viewed as a trusted partner of community banks,” says Wilson.

One of EJF’s primary roles in smaller regional bank deals is handling the regulators. Large banks are in constant contact with regulators; some have a dozen or more staffers from the regulators permanently on-site to give guidance.

Smaller banks lack this kind of intimacy and EJF does a lot of the initial contact with the Office of the Comptroller of the Currency (OCC), and by extension with the Fed and the Federal Deposit Insurance Corporation (FDIC).

Wilson cites the Third Coast deal as an example of EJF working collaboratively with banks and regulators to ensure success.

Though for small banks the relevant regulator is the OCC, contact with it flags to other regulators what is afoot. The Fed is then involved in the question of what degree of risk reduction is entailed, as this is most relevant to it.

This is not, however, the most challenging part of the whole process. For the most part the regulators see the benefit of risk-sharing deals and are happy to give the seal of approval.

“The hardest part is convincing the small banks this is a win/win/win situation– it’s a win for you, for the investor and for the government,” explains Wilson.

Simon Boughey

24 October 2025 20:28:32

News

Capital Relief Trades

SCI Risk Sharing Awards: Investor of the Year

Winner: Chorus Capital

The only major independent SRT-focused asset manager, Chorus Capital raised US$2.5bn of capital commitments during the awards period via the Chorus Capital Credit Fund V, the largest dedicated fund in the market. Having invested over US$1bn in 1H25, cementing the firm in the ranks of the largest investors in the risk-sharing market, it is SCI’s pick for Investor of the Year in the 2025 Risk Sharing Awards.

Chorus Capital Credit Fund V represents Chorus Capital’s largest commingled investment vehicle to date. Fundraising was concluded in the context of a challenging fundraising environment internationally and the fund received strong support, both from existing limited partners and new investors, who represent circa 60% of capital commitments. This further diversified the firm’s institutional investor base, including pension funds, insurance companies, sovereign wealth funds and family offices across North America, Europe, the Middle East and Asia.

Chorus Capital has over US$6bn in aggregate capital commitments since inception, providing the critical mass required to anchor SRT transactions. Furthermore, being a pure player in risk-sharing enhances the certainty of execution that banks seek.

Founded in 2011 by three former Goldman Sachs credit professionals, the firm is majority owned by its employees, co-founders and directors, strengthening the alignment of interest between the firm and its investors. With a headcount of 36 employees across 12 nationalities, it has built one of the largest teams fully dedicated to the risk-sharing strategy, bringing the necessary resources to originate, underwrite, structure, price and execute transactions. Almost 40% of staff across the firm and in the investment team are women.

The investment team’s long-standing experience in the credit markets combines years spent originating and structuring risk-sharing transactions at leading investment banks, with leadership positions in the bank treasury and capital management teams. Kaiko Kakalia, cio at the firm, was previously md, fixed income structuring and advisory at RBS and head of structured solutions within ABN AMRO’s asset and liability management group.

Chorus Capital is recognised for its proactive approach to origination, boasting four senior originators with an average of 22 years of financial markets experience, providing a thorough understanding of banks’ needs and the constraints under which they operate. In turn, this allows the firm to establish and maintain strong, long-lasting relationships with a growing number of issuers across the globe.

It is focused on large corporate loan portfolios from the core businesses of European and North American banks, which account for circa 80% of investments since 2020. The investment process is based on deal sourcing, thorough due diligence, fundamental credit underwriting using a proprietary internal credit scoring system, conservative transaction structuring and quantitative risk management.

Chorus Capital is also known for its strong corporate engagement. The firm is currently launching a foundation and it has had a responsible investment policy in place since 2019.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

22 October 2025 12:19:28

News

Capital Relief Trades

SCI Risk Sharing Awards: European Transaction of the Year

Winner: ARTS Leasing 2024

The €2.5bn ARTS Leasing 2024 deal represents the largest fully unfunded SRT ever placed with (re)insurers and the first to reference corporate/SME real estate leasing exposures. For demonstrating how the insurance market can be tapped by issuers to cover more complex risk in size, the trade is SCI’s European Transaction of the Year in the 2025 Risk Sharing Awards.

UniCredit (UCI), together with Marsh and Guy Carpenter (collectively MMC), acted as co-arrangers on ARTS Leasing 2024 – the second SRT completed by UniCredit Leasing (UCL), but the first for its corporate/SME real estate leasing portfolios. Structured as an insurance policy and placed with a panel of insurers, the transaction references a static granular portfolio of real estate leasing exposures to Italian corporates and SMEs.

As the transaction was the first of its kind in the SRT market, the joint teams of MMC, UCI and UCL worked collaboratively to structure, model and inform (re)insurers on this new asset class to prepare the transaction for market, resulting in a successful placement of circa €260m insured tranches. The placement process gathered interest from 12 highly rated global insurance and reinsurance companies, and concluded with the final selection of four, including two insurers participating for the first time in an Italian SRT.

Given the rating profile of the four insurers (two rated in the double-A cohort and two rated in the single-A cohort by S&P), the result was an extremely highly efficient RWA release under SEC-SA. The level of interest for both the upper mezzanine tranche and lower mezzanine tranche enabled UCL to efficiently execute and optimise allocation in terms of RW relief, pricing and investor base diversification.

Amortisation is pro-rata, with a switch to sequential, subject to performance triggers. Traditional calls are incorporated, including a time call set to the WAL of approximately 4.2 years.

The successful execution of ARTS Leasing 2024 adds a new asset class - real estate leasing - to the European securitisation market and marks a major milestone in the development of the unfunded SRT market. Real estate leasing is not only an important component of EU bank balance sheets, but also the EU real economy, emphasising the role of SRT to sustain the real economy.

Given the referenced asset class represented new territory for the SRT market and in particular for unfunded investors, the joint teams of UCI, UCL and MMC offered a thorough due-diligence process, tackling more than 230 questions from investors covering a wide range of structuring, legal, regulatory and asset class topics, in order to position UCL for a successful execution amid a volatile macroeconomic and geopolitical backdrop.

As such, the insurance markets have proved to be a growing and efficient source of capital for EU banks, and they continue to demonstrate their pricing capabilities, innovation and flexibility to work with first-time issuances and complex asset class. The approach of the industry is now on a par with the funded investor universe in that (re)insurers are able to cover the full transferred tranche, in meaningful size, and with low attachment points.

ARTS Leasing 2024 is noteworthy not only because of the deal features, size and nature of investors, but also because of the organisational capabilities of UniCredit Group to expand its best practice of the central team at UniCredit to the other legal entities of the Group and for the pivotal role of Marsh McLennan to develop and distribute such a large capacity to the insurance markets.

Honourable Mention: Santander Leasing Poland - EIB Group Deal

The EIB, the EIF, Santander Bank Polska and Santander Leasing closed in February 2025 a synthetic securitisation targeting Polish SMEs that unlocked a new use of proceeds for SRT, through its focus on gender finance. The transaction mobilised up to PLN5bn in new funding, at least a third of which will benefit companies owned or led by women, those promoting inclusive employment or offering products designed to tackle the gender gap. Under the agreement, the EIB Group guaranteed a senior tranche of around PLN3.4bn and a mezzanine tranche of approximately PLN560m, with Santander retaining the junior tranche.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

20 October 2025 09:58:03

News

Capital Relief Trades

SCI Risk Sharing Awards: North American Transaction of the Year

Winner: EJF CRT 2025-1

EJF CRT 2025-1 established a precedent for smaller financial institutions aiming to adopt synthetic securitisations to manage and mitigate their exposures. For illustrating that complex risk management strategies can be tailored to support the growth and stability of smaller US banks and lenders, the transaction is SCI’s pick for North American Transaction of the Year in the 2025 Risk Sharing Awards.

Closed in April 2025, the US$200m EJF CRT 2025-1 references a single revolving commercial real estate loan originated by Third Coast Bank and secured by the assets of 11 residential planned communities in Houston, Dallas and Austin. The transaction is the first-ever deal of its kind to achieve a reduction of CRE concentration, as well as the traditional objective of an SRT issuance – to reduce capital requirements.

The initiative for the transaction - which was a year in the making - emanated from the exploration of a partnership between Third Coast and EJF Capital, with the aim of creating SPVs in the form of bonds, either for investment retention or sale. The resultant SPV encompassed challenging specialty finance loans, significantly reshaping Third Coast’s risk profile upon closing, allowing it to materially de-risk while generating substantial fee income. This marked a departure from the norm, as the bank had traditionally sought syndication and participation to mitigate risk across its books.

Third Coast became the first bank of its asset size (US$5bn) to successfully complete an SRT deal, with the next largest bank achieving this milestone with US$40bn in assets. Additionally, it was the first (and second) bank to successfully close an SRT with real estate development loans as collateral, with a second transaction – the US$150m EJF CRT 2025-2 – following in June.

These initiatives have not only reduced RWAs, but also increased liquidity and optimised lending efficiency. By embracing SRT, Third Coast has navigated the complexities of capital management, demonstrating agility that is rare among banks of its scale. The bank has also set a template that has applicability across the entire US regional bank network and which is expected to be replicated by many of its peers in the years to come.

Honourable mention: USCLN 2025-SUP1 (US Bank)

With USCLN 2025-SUP1, US Bank transformed a private corporate loan SRT transaction into a widely syndicated, rated ABS note deal. Portfolio selection and structuring allowed for highly efficient tranching by rating class and distribution to a broad range of market participants across the capital structure. Run as a syndicated book build deal, the transaction opens up investment grade corporate SRTs to the wider US capital markets and is set to serve as a benchmark for other similar deals.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

20 October 2025 09:54:49

News

Capital Relief Trades

SCI Risk Sharing Awards: North American Issuer of the Year

Winner: Citi

Citi’s Terra Significant Risk Transfer (SRT) programme stands out as one of the most active, robust and efficiently executed in the market. Due to the bank’s consistent presence in the global risk sharing market and as one of the most well-known issuers in the North American market, Citi is North American Issuer of the Year in SCI’s 2025 Risk Sharing Awards.

Terra was established in 2007, meaning it is one of, if not, the longest-standing SRT platforms in the market - making Citi a pioneer in North American SRT and a leader among its US peers. With Citi’s most recent trade executed in June 2025, the US$8bn Terra XXI transaction became the largest executed to date under the programme.

The hedging transaction provides Citi with credit line reduction across the reference portfolio - which comprises over 500 underlying large corporate loans across over 400 relationships and referencing a global portfolio which tailors to Citi’s global presence. Following the bank’s static deals executed in 2023-2024 with Basel 3 Endgame proposals in mind, Terra XXI reintroduces a limited one-year replenishment period to enable better forecasting and management of the credit risk and capital benefits from the existing portfolio of SRT hedges. The directly-issued CLN structural variation also provides Citi with flexibility in execution formats, allowing for diversification across programme constraints and investor preferences.

The Citi platform prides itself in being known for having strong underpinnings in a well-established, reliable process that ensures consistency, transparency and strong execution across multiple issuances. Citi Terra programme issuances are recognised as a true risk sharing partnership between the bank and investors, with a heavy focus on process and due diligence, creating a unique opportunity for all parties to the transactions.

Honourable Mention: BMO

BMO is recognised for its continuous engagement with the market, as well as the breadth and diversity of its SRT platform and the innovation across its various programmes. Notably, among the transactions the bank issued during the awards qualifying period, its Killarney II deal features an upsizing feature that is pre-agreed up to a limit and thereafter with mutual consent.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

23 October 2025 18:20:54

News

Capital Relief Trades

SCI Risk Sharing Awards: European Arranger of the Year

Winner: Alantra

Alantra demonstrated outstanding breadth and depth across the European SRT market during the awards qualifying period, assisting a number of regional and domestic banks on landmark transactions and driving consistency between jurisdictions. For its independent, conflict-free advice, regulatory fluency and proven client impact, Alantra is recognised as SCI’s European Arranger of the Year in the 2025 Risk Sharing Awards.

Alantra is an independent investment banking adviser, equally recognised by issuers and investors for creating strongly positive outcomes. The firm combines rigorous technical expertise with a collaborative approach, ensuring every transaction is tailored to the needs and objectives of its clients.

Alantra’s pan-European team of dedicated securitisation specialists is located in London, Madrid, Athens, Dublin and Lisbon. It helps large institutions as well as smaller banks and first-time issuers interpret and present data and work through structural options. Its local knowledge enhances investor education, broadens market access and strengthens the overall development of the European SRT market.

Over the past three years, Alantra’s Financial Institutions Group (FIG) has advised on more than 20 securitisation transactions – in cash and synthetic form - for leading banks in the UK, Germany, Portugal, Greece and France. Its experience spans a wide variety of structures, including direct CLNs and funded and unfunded synthetic deals across most asset classes. Alantra’s consistent success in obtaining SRT approvals from various regulators underscores its regulatory expertise and ability to deliver certainty of execution.

Among the standout transactions arranged by Alantra in 2024 was Helaba’s second synthetic securitisation, which referenced a €2.3bn corporate pool. The competitive two-stage investor process introduced Helaba to a broad audience of SRT investors and resulted in a tailor-made transaction that delivered material RWA relief and attractive economics.

Another innovative deal was Piraeus Bank’s €1.98bn corporate/SME SRT from 2024, the first direct CLN issuance by a systemic bank in Greece. This marked the seventh Piraeus SRT arranged by Alantra, with each one securing full SRT and STS recognition and reducing the bank’s RWAs by more than €4bn in total, evidencing the strength of Alantra’s long-term client partnerships.

Indeed, the firm is known for its competitive results, repeat mandates and programmatic issuance strategies that result in cost-effective capital relief for clients. The typical process includes 10-20 investors, ensuring tight spreads, diversified allocation and routinely beating comparable market prints.

Tangible client benefits delivered by Alantra include billions of euros of capital freed up for new lending, as well as improved CET1 ratios and shareholder returns, and the avoidance of dilutive equity raises.

Honourable Mention: Revel Partners

From a standing start in May 2024, Revel Partners has hit the ground running as an independent arranger focused on the Nordics, bringing a range of interesting transactions to the market and opening up SRT for smaller banks in the region. The firm has impressed with its structuring and regulatory expertise, as well as its access to and relationships with investors.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

24 October 2025 10:33:19

News

Capital Relief Trades

SCI Risk Sharing Awards: (Re)insurer of the Year

Winner: AXIS

AXIS participated in a wide range of transactions during the awards period, demonstrating broad asset class expertise. For this and its flexibility in providing both senior mezzanine unfunded coverage and low attachment points on granular portfolios, it is (Re)insurer of the Year in SCI’s 2025 Risk Sharing Awards.

AXIS offers a unique value proposition by leveraging over two decades of single-credit underwriting expertise across developed and emerging markets, and particularly in infrastructure finance. AXIS’ integrated capabilities across portfolio modelling, due diligence and pricing enables it to structure and support innovative transactions, especially for complex asset classes.

Over the past 12-18 months, AXIS has expanded its portfolio from five to 13 SRT transactions and increased its transaction capacity from US$25m to US$60m, with the potential to go up to US$100m in line with evolving market demands. AXIS offers long-tenor capabilities of up to 20-plus years, addressing duration challenges in asset classes such as SME lending, leasing and project finance. Other than SRT, AXIS is actively involved in providing alternative structured portfolio solutions to bank and non-bank financial institutions.

Portfolio sizes range from 80 to over 40,000 borrowers, demonstrating flexibility across different SRT structures. AXIS has insured both junior and senior mezzanine tranches within the same portfolio, with attachment points as low as 0.5%, thereby helping issuers close gaps at the junior mezzanine level. AXIS currently supports six funded transactions.

Its geographic exposure spans UK/Europe, North America, Latin America and Asia Pacific, including several multi-country transactions. This is complemented by diverse asset class coverage, including project finance, income-producing real estate, corporate loans, SME lending, real estate leasing, corporate leasing, auto dealer floorplan, salary and pension loans and leveraged loans.

With a presence in London, Bermuda, Zurich and Singapore, AXIS integrates single-credit expertise with portfolio underwriting capabilities through its global credit team, which operates portfolio management and origination as a unified function worldwide. This is supported by a dedicated pricing team with significant experience in pricing credit portfolios.

AXIS is able to issue insurance cover through its operating entities in Bermuda, Dublin and London, tailored to meet issuer requirements and subject to regulatory permissions. It maintains strong relationships with major issuers and their arranging teams, and has been invited to participate in third-party transactions. Additionally, it has collaborated with insurance brokers and funded vehicle platforms to access both unfunded and funded SRT structures, enabling it to support UK and EU STS transactions.

The AXIS team has also successfully partnered with investment funds to restructure their positions – including re-tranching equity into equity/mezzanine tranches. While thicker tranches may pose challenges to fund returns, the firm’s involvement allows access to STS transactions, which insurers currently struggle to engage with directly. This capability helps funds close large transactions with issuers more effectively.

One notable transaction that benefited from AXIS’ involvement during the awards period is IDB Invest’s US$1bn Scaling4Impact, the second-ever SRT issued by a multilateral development bank and the first-ever emerging markets SRT with an insurer insuring the mezzanine tranche (AXIS attached at 10% and detached at 13%). The deal featured a non-granular portfolio (with exposure to 20 countries and 10 sectors) and a blend of funded and unfunded investors/insurers.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

22 October 2025 17:40:14

News

Capital Relief Trades

Four GSIBs reported in CRT market

Bumper Q4 in the offing

JP Morgan is reported to have priced a CRT deal tied to a pool of leveraged loans today, but no other terms have emerged.

In what is shaping up to be a bumper quarter for the risk-sharing market on both sides of the Atlantic, JP Morgan is also rumoured to be in the market with a transaction tied to a US$2bn reference pool of private jet loans – in what would probably be a first for the market for this rare asset class.

It is believed to be selling a 0%-12.5% first loss position, so overall deal size would be US$250m.

JP Morgan has been unavailable for comment.

Three other major US banks are also said to be in the market, all of whom have issued CRT deals before.

Goldman Sachs is said to be marketing a US$5bn corporate loans CRT transaction through its Absolute platform, and the deal is expected to be sized at around 10%.

In the biggest of the deals believed to be out there this quarter, Morgan Stanley is in the market with a US$6bn subscription line financing transaction. If this proves to be also a 0%-12.5% first loss deal, Morgan Stanley will be looking for buyers for US$750m.

Finally, Bank of America, which has been in the market a great deal with various different asset classes, is said to be marketing a US$3bn pool of subscription line financing.

No other details are as yet forthcoming.

Simon Boughey

22 October 2025 23:34:40

News

Capital Relief Trades

SCI Risk Sharing Awards: European Issuer of the Year

Winner: Intesa Sanpaolo

Intesa Sanpaolo achieved a high SRT transaction volume, both by deal count (seven) and notional value (€12bn), across diverse asset classes and formats during the awards period. For the bank’s impressive expansion into leveraged/acquisition finance and commercial real estate SRTs - in conjunction with enhanced distribution outreach efforts - Intesa Sanpaolo is European Issuer of the Year in SCI’s 2025 Risk Sharing Awards.

Intesa Sanpaolo has been active in the SRT market since 2014, developing expertise and earning recognition in the sector through innovation in asset classes, transaction structures and execution strategies. The 12 months from 1 July 2024 were no exception.

The main objective of Intesa Sanpaolo’s SRT programme is to optimise capital through both de-risking its current stock portfolio and supporting capital-efficient loan origination.

On the de-risking side, Intesa Sanpaolo further expanded its SRT programme over the qualifying period with the closing of the GARC High Potential-3 transaction. The €1.2bn deal represents the first Italian synthetic securitisation on a portfolio of pure leveraged and acquisition finance loans (accounting for 35% of the pool) and corporate loans labelled as leveraged transactions, in line with the ECB’s Final Guidance (65%). Loans granted to top economic groups are fully disclosed.

Other deals executed on the de-risking side during the period include:

€1.4bn GARC Commercial Real Estate-2, Intesa Sanpaolo’s second trade referencing a pool of pure commercial real estate loans (40%) and corporate real estate mortgage loans (60%);
€2.9bn GARC Corp-7, the bank’s first STS synthetic securitisation on a static portfolio consisting of medium/long-term loans to corporate clients, including exposures originated by the Group’s foreign branches;
€1.5bn GARC ESG & Circular Economy-3, the Group’s third synthetic securitisation on a corporate portfolio fully integrating Intesa Sanpaolo’s proprietary ESG Scoring model and circular economy assessment process, in which credit risk was transferred to both credit funds and insurance companies;
US$2.4bn GARC USD Corp-2, Intesa Sanpaolo’s second synthetic securitisation on an international US dollar-denominated portfolio of loans extended to corporate clients, where credit risk of the junior tranche was transferred via the issuance of variable return notes by an Italian SPV.

On the capital-efficient loan origination side, Intesa Sanpaolo’s activity during the qualifying period was notable for the execution of a pair of synthetic securitisations referencing forward-flow portfolios in connection with corporate, SME corporate and SME retail clients. The final originated amount of GARC New Origination-2 was €2bn within the 12-month ramp-up period, while the bank is targeting a portfolio amount up to €6bn within a maximum 12-month ramp-up period for GARC New Origination-3.

Loan origination is also supported by incorporating replenishment/substitution features in deals referencing corporate and structured finance pools. Examples of this include the GARC CRE-2, GARC HP-3 and GARC ESG & CE-3 trades.

The Balance Sheet Optimisation Unit – part of Intesa Sanpaolo’s CFO Area - acts as a catalyst for active credit portfolio management within the bank by optimising the risk-return profile of the book and its capital absorption, coherently with the bank’s risk appetite and regulatory framework. Within its mandate, the Unit - also in cooperation with IMI C&IB Division as arranger and placement agent - is equipped to identify and establish the most appropriate structure for each market transaction (both on a single-name and on a portfolio basis) with the purpose of generating value.

At year-end 2024, Intesa Sanpaolo was the third most active SRT originator relative to balance sheet size among the main issuers in Europe. The bank’s total outstanding on its SRT programme stood at circa €30bn of synthetic and cash transactions at 1Q25.

Honourable Mention: NatWest

Over the past 18-24 months, NatWest has made significant progress in establishing SRT as an integral part of its risk and capital management toolkit, creating a large, diversified and programmatic issuance platform. Notably, the bank is recognised for its high-touch and constructive engagement with investors.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

23 October 2025 10:23:09

News

Capital Relief Trades

SCI Risk Sharing Awards: ESG Deal of the Year

Winner: Scaling4Impact

Scaling4Impact stands out for its multiple ‘firsts’ and its broad-reaching impact. For making a real-world difference across Latin American and emerging market countries, the transaction is SCI’s pick for ESG Deal of the Year in the 2025 Risk Sharing Awards.

In September 2024, Newmarket Capital completed the US$1bn Scaling4Impact (S4I), its second significant risk transfer (SRT) with a multilateral bank (MDB). Executed with IDB Invest, the private sector arm of the Inter-American Development Bank (IDB), the transaction represents the first-ever SRT between a private investor and an Americas-based MDB – an important milestone in the evolution of securitisation and development finance.

Newmarket served as the bilateral investor assuming junior mezzanine tranche risk on a diversified portfolio, enabling IDB Invest to expand its lending capacity and direct an additional US$500m towards socially and environmentally impactful projects. AXA XL and AXIS insured the senior mezzanine tranche. Santander acted as advisor on the deal.

The reference portfolio spans 20 countries and 10 sectors across Latin America and the Caribbean (LAC), encompassing essential project finance assets and strategically important financial intermediaries in the LAC economy. The portfolio aligns with IDB Invest’s mandate to promote inclusive and sustainable growth in the region.

Newmarket pioneered the market’s first securitisation with an MDB in 2018 with the Room2Run transaction with the African Development Bank. S4I innovates beyond the groundbreaking Room2Run transaction through a more efficient structure, the incorporation of private sector insurers, engagement with rating agencies and the pioneering of the first post-COVID-19 risk transfer with an MDB.

Multilateral development banks have a crucial role in financing infrastructure and development in emerging markets where the demand significantly exceeds the capacity of private lenders. With unique mandates and regional expertise, MDBs are able to channel funding to projects that deliver broad public benefits.

In recent years, much of their expanded capacity has been underwritten by member countries. Recognising the limits of this approach, the G20 has called on MDBs to optimise their balance sheets to maximise the impact of every public dollar. S4I responds directly to this call by creating a scalable mechanism that advances IDB Invest’s mission while offering a replicable model for future MDB transactions.

Scaling4Impact illustrates how SRT can mobilise private capital to expand development lending in historically underfunded regions. Newmarket is proud to contribute to this transformative initiative, which will play a key role in strengthening economic and infrastructure development in LAC and establish a model for similar opportunities worldwide.

Honourable Mention: Verano IV (Alecta, BBVA, PGGM)

BBVA and PGGM closed Verano IV in November 2024, initially with a portfolio notional of €2bn, before upsizing it – after involving Alecta as a second investor - to €6bn in April 2025. The global large corporate loan transaction is widely perceived as a blueprint for ESG SRT through its coupon step-down mechanism on green criteria. More than 30% of the enlarged portfolio is linked to ESG performance indicators, with the pricing mechanism adjusting the cost of capital based on the underlying borrowers’ progress towards key sustainability goals.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

21 October 2025 09:46:29

News

Capital Relief Trades

SRT talent lag

RCQ associates discuss recruitment trends

As the market nears the year-end, the Q4 pipeline for SRT activity is reaching its peak, fueling notable hiring momentum. In this context, SCI speaks with Edward James, founding director of RCQ Associates (RCQ), on how hiring trends are shaping one of the market’s most specialised sectors.

Despite the consistent surge in primary SRT deal flow, James underscores that recruitment activity invariably lags the transaction market. He notes: “there’s a correlation between how busy the market is and hiring activity, but there’s always a lag. Most firms like to keep lean teams, so they usually only hire once deal activity really picks up.”

This latest hiring spree has been marked by a growing shift toward the buy side, with insurers and reinsurers becoming an increasingly appealing option – a noticeable shift in recent months. Drawing on his experience, James comments that little has changed over time, nor is it likely to: experts in the space will always have opportunities on the buy side, where roles often come with higher total compensation packages, a better work–life balance, and smaller, more specialised teams.

With SRT now increasingly a standard feature rather than a niche tool, banks are looking to ramp up their risk transfer programmes, which naturally involves expanding their teams. So far, sell-side recruitment has largely focused on retraining internal staff or facilitating bank-to-bank moves, particularly for senior or high-profile roles. This contrasts with the buy-side, which has the flexibility to source talent from both investors and banks.

While the sector has seen high-profile moves (see SCI’s Job swaps weekly) that are more visible across the industry, many junior moves happen more quietly within the industry. “The biggest demand for skill sets is probably in that three-to-seven-year range: people who are cost-effective, can add value, and know what they’re doing. It’s also a smaller talent pool, which makes competition for that experience level particularly strong”, Edward notes. Still, the space remains highly competitive due to a limited pool of available talent.

And even as the SRT market expands across markets, Europe continues to lead, including in terms of recruitment. “London remains the hub of SRT. Given that the investor community is largely based there, it naturally leads in terms of hiring and headhunting activity,” says James.

Still, he observes that the US market is huge, ripe for growth, but a bit disparate. Outside of London, activity is also concentrated in Toronto, Paris, and Amsterdam, which have become key centres in the global SRT space. There have also been a few international moves as people relocate from country to country for the right role.

“I don’t see any reason for it to slow down [on SRT hiring trends]. Certain banks are ramping up their SRT programs, and a few investors are hiring at associate and VP levels.”

Dina Zelaya

21 October 2025 00:17:47

News

Capital Relief Trades

SCI Risk Sharing Awards: Innovation of the Year

Winner: Derivative Credit Risk Transfer Solution

BNP Paribas and Howden’s Derivative Credit Risk Transfer Solution represents a pioneering step in untranched synthetic risk transfer for derivative exposures, expanding the scope of synthetics to a previously untapped asset class. For blending single-name credit insurance with synthetic securitisation technology and expanding the ways in which the insurance market can assist in bank capital optimisation, the transaction is SCI’s Innovation of the Year in the 2025 Risk Sharing Awards.

The Derivative Credit Risk Transfer Solution was developed to push the boundaries of insurer participation in credit risk transfer, combining elements of insurance and securitisation to create a more efficient and scalable approach to managing credit risk. This transaction was a syndicated trade with six insurers, marking the largest club to date.

The insurance market has historically struggled with fluctuating derivative utilisations, creating inefficiencies in risk allocation and premium pricing. Building on years of innovation, internal legal work and numerous exchanges with insurers, BNP Paribas - Global Markets (BNPP - GM) created a new product and offered it to key insurance partners. This transaction introduces a superset structure, which establishes a pre-agreed eligibility framework for counterparties.

Key structural elements of the deal include: pari passu coverage; policy limits; exposure-based premiums; an aligned policy period; automatic inclusion; dynamic insurance; and replenishment.

By allocating insurance capacity only to actual exposures absorbing capital, the bank optimises the utilisation of its insurance limits, while insurers secure a more predictable and adequate return. The untranched nature of the structure ensures that the transaction is not classified as a securitisation, avoiding additional regulatory complexity while maximising operational efficiency.

Confidentiality remains a critical concern, particularly for counterparties such as equity sponsors or funds, who often require stringent privacy protections. Through the superset exposure framework, live exposures can be attributed to any name within the superset, ensuring robust confidentiality while still allowing insurers to conduct appropriate underwriting due diligence. This dual benefit strengthens market participation and maintains institutional integrity.

With large exposure reporting requirements for GSIBs intensifying, this structure enables the bank to manage RWA exposures more efficiently while simultaneously optimising counterparty exposure by reallocating risk to insurers. A larger number of assets have been targeted that would have been more difficult to include in a traditional insurance contract. This approach not only improves RWA efficiency, but also aligns with broader market trends focusing on capital optimisation and enhanced regulatory compliance.

BNP Paribas and Howden’s Derivative Credit Risk Transfer Solution delivers a step-change in operational efficiency for managing credit risk. By blending insurance and securitisation principles, it streamlines risk allocation, optimises capital usage and enhances insurer participation.

The superset structure, exposure-based premiums and dynamic insurance model ensure precise alignment with actual exposures, reducing inefficiencies and securing competitive pricing. As the largest syndicated trade of its kind, the transaction demonstrates a scalable and pragmatic approach to risk transfer.

Honourable Mention: Hermes I (Magnetar, Sabadell, UniCredit)

In December 2024, Banco de Sabadell executed Hermes I, a US$1.23bn SRT referencing a portfolio of US-originated project finance and corporate loans. The transaction represents a pioneering cross-border structure: US dollar assets originated, booked and managed by Sabadell’s Miami branch; capital relief recognised at the Group level in Spain; and capital recycled at the branch level. The deal - executed in partnership with Magnetar as sole investor and arranged by UniCredit - sets a template for integrating transatlantic balance sheet optimisation and branch asset mobilisation into a European bank strategy.

For the full list of winners and honourable mentions in this year’s SCI Risk Sharing Awards, click here.

21 October 2025 16:47:45

News

Capital Relief Trades

De-stressing stress tests

Fed could recognize CRT deals in US bank stress tests

This Friday, October 24, the Federal Reserve could announce at an open board meeting that future bank stress tests will include recognition for risk sharing transactions, say sources, – giving the US market a significant boost.

The only matter to be considered at this meeting is the proposal “to enhance the transparency and public accountability of the Board’s stress testing framework and to request comment on the scenarios for the Board’s 2026 supervisory stress test.”

It has long been a matter of frustration that the test process is considered unnecessarily obscure, and that too few mitigants are considered legitimate. The proposal is intended to address a 2024 lawsuit filed by the American Bankers Association (ABA) which alleged the stress testing rules are unlawful as they are opaque and the Fed is not obliged to make public how it does it.

Though at this stage it is only rumoured that the Fed will include a section which sets out a standardized formula for banks to receive allowance for capital relief mechanisms, the market is hopeful.

At the moment, if a bank wishes to receive such treatment, it must enter specific discussions with the regulator. This is a burdensome process and leads to an uneven playing field

“If the Fed lets banks integrate CRT into stress testing that should spur at least a few more big regional banks, if not more, to enter the market,” says Matt Bisanz, a partner at Mayer Brown and a leading authority on banking regulation.

The news would be particularly auspicious as the 31 banks that are required to be subject to stress tests to the Fed are exactly the sort of names that have done CRT transactions or could be expected to do them in the future. The list includes established CRT issuers like JP Morgan, Citi and BMO, more recent entrants like US Bancorp, Truist and Wells Fargo, but also likely debut candidates like PNC and Fifth Third.

In addition, the Fed, alongside the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), is expected to soon release more bank friendly news in a relaxation of the Community Bank Leverage Ratio (CBLR) from 9% to 8%.

This would encourage eligible community banks (those with less than US$10bn in total assets) to comply with a less burdensome CBLR. Since its introduction in 2019, only about one-third of the roughly 3500 eligible banks have opted in, despite the fact that this would mean it does not have to complete intricate and burdensome risk-weighted capital calculations.

The relaxation would have little or no effect on the capital relief market as those banks affected are not likely to be ones who will issue CRT deals. However, it does demonstrate that a new regime that wants capital regimes to be relaxed is in town.

Michelle Bowman, vice-chair of supervision, noted early this year that the current 9% CBLR threshold has not satisfied its objective, and she is also on record as being supportive of risk sharing deals.

Simon Boughey

21 October 2025 18:50:38

News

CLOs

JPMorgan implements BSL cashless roll solution

Platform promises to streamline loan facility tracking as refis, repricings and extensions take up an increasing share of market volume

JP Morgan has become the first administrative agent to adopt Versana’s new cashless roll solution for tracking the transaction history of broadly syndicated and private credit loans. The cashless roll capability has been integrated into Versana's centralised, real-time digital platform, where it can consolidate the information linked to loans exchanged via cashless roll - whereby the original facility is effectively replaced with an amended loan without actual funding or cash payment.

This technique is well-established in the syndicated loan market in the event of a credit facility being refinanced, repriced or extended. But tracking the transaction history of the facility across this rollover has been something of a sticking point for market participants.

Versana’s novel solution claims to address this long-standing pain point in the BSL market, which promises to help market participants manage the complexity arising from an ever-increasing volume of loan repricings and refinancings carried out via the cashless roll mechanism. Users will have access to the full transaction history of a loan facility from its origination, delivering real-time information directly from the agent’s golden-source loan servicing system, ensuring accuracy and reducing counterparty risk.

Joseph Ferriolo, head of debt capital market operations & merchant bank policy at JPMorgan, said that as an increasing share of market volume is taking place as repricings, the cashless roll solution will be an important part of managing these facilities. “With over 50% of market volume year-to-date occurring in repricings, this cashless roll functionality is a significant benefit to all loan market participants, enabling them to seamlessly track an initial loan position through to its new refinanced facility. JPMorgan is proud to be the first agent to implement Versana’s cashless roll capability, allowing our lender clients to now string together their full position history.”

Cynthia Sachs, ceo at Versana, anticipates that the solution will ultimately be rolled out across all administrative agents, thereby contributing to the wider modernisation of the US$8trn BSL and private loan markets.

As such, widespread adoption of the feature should benefit CLO managers, offering them improved portfolio management - often containing hundreds of these loans - and removing the manual work involved with tracking amended loans and giving them access to unified cashflow, transaction and lender-level information from the administrative agent’s golden-source system.

Solomon Klappholz

22 October 2025 14:03:53

News

CLOs

Reckoner debuts BBB-B CLO ETF

Fund set to tap growing investor appetite for mezz exposure

Reckoner Capital has launched the Reckoner BBB-B CLO ETF (RCLO) on the New York Stock Exchange, offering retail investors easy access to mezzanine CLO debt. RCLO is an actively managed fund, primarily investing in triple-B minus and double-B rated CLO paper, seeking to take advantage of continued demand for CLO ETFs while also tapping into growing investor appetite for exposure to mezzanine debt.

Reckoner states that the fund is designed to generate current income for investors while also providing the capital preservation of triple-B minus and double-B rated CLO tranches, noting this paper has several attractive properties relative to similarly rated corporate bonds. For example, the firm argues that the combination of higher yields, lower price volatility and comparable liquidity when stacked up against similarly rated credit assets make RCLO a strong proposition for investors.

The fund will also feature a few single-B CLO tranches, according to Reckoner. The firm says it has been “extremely selective” when adding paper from this segment.

John Kim, co-founder and ceo at Reckoner, says CLO ETFs continue to attract interest from yield-seeking investors, but most of this investment has focused on triple-A paper, leaving a gap in the market for a fund tracking more junior tranches. “We continue to see strong demand in the CLO ETF market from investors who are seeking portfolio diversification and attractive yields with low correlation to traditional fixed income classes,” he explains.

He adds: “While most inflows have been directed to the triple-A space, triple-B mins and double-B rated CLOs offer a higher yield than triple-A CLOs, while still outperforming other credit assets with similar ratings in terms of loss experience. We expect to see more investor interest in these mezzanine tranches as the market continues to develop.”

Despite investors recently pulling cash from major funds like Janus Henderson’s JAAA, marking the biggest outflow from CLO ETFs since April, Kim believes the mezzanine tranches still offer investors significant value, given CLOs often receive conservative ratings.

Setting its fund apart from other triple-B CLO ETFs, Reckoner cites deep expertise in the triple-B CLO space, noting the core team on RCLO previously managed the Eldridge BBB-B ETF (CLOZ) that was launched under its former name Panagram in 2023. As such, the firm says it will be able to leverage the team’s longstanding relationships in the industry to optimise the fund’s performance.

RCLO expands Reckoner’s CLO ETF stable, joining RAAA, which was the first-ever yield-enhanced triple-A CLO ETF to hit the market when it launched in July 2025.

Richard Hoge, md at Reckoner, notes that the firm's growing CLO ETF offering aims to give a broader investor base access to a range of CLO paper across the capital structure, stating that the firm is confident in the demand for this latest addition. "Our goal is to improve access to alternative assets for a broader investor base, including retail investors, who have traditionally had limited access to professionally managed alternative credit investments,” he concludes. “We are committed to delivering risk-adjusted investment solutions and we are confident in the demand for this differentiated product in the marketplace.”

Solomon Klappholz

23 October 2025 12:27:26

Talking Point

Asset-Backed Finance

Established asset managers seek scale in European ABF

Collateralised, data-driven origination to drive next phase of private credit growth

With ABF becoming the fastest-growing frontier of private credit, established asset managers are now making moves to stake their claim and secure a share of the market. A new whitepaper from Cardo AI - entitled ‘Emerging ABF strategies for Established Asset Managers’ - argues that the European market is reaching an inflection point, as institutional investors and large asset managers reposition themselves to capture better risk-adjusted returns as banks retrench and the regulatory tide shifts.

“Established managers are uniquely positioned to scale ABF platforms because they already possess the operational infrastructure, compliance frameworks and investor trust required for this asset class,” the Cardo AI report notes. “The next phase of private credit growth will rely on collateralised, data-driven origination rather than unsecured lending.”

Such a narrative is not new and has been emerging steadily across the European market as direct lending spreads compress and opportunities in ABF gain recognition. For insurers and pension funds in particular, those characteristics translate into lower correlation, more predictable cashflows and improved capital efficiency – where regulations allow.

Cardo AI estimates that the global ABF market will grow from roughly US$6.1trn in 2023 to US$9.2trn by 2029, driven by both institutional allocations and the entry of larger asset managers seeking scalable private-credit extensions. Yet Europe accounts for less than a fifth of that total today, highlighting the depth of the opportunity ahead.

Conversations at SCI’s recent European ABF Forum reflected similar themes, with panellists identifying insurance investors and large-scale partnerships as pivotal to unlocking the European ABF sector’s next phase of growth. The conference also highlighted the same operational hurdles raised by Cardo AI - particularly around data transparency, deal complexity and the need for scalable technology across multi-jurisdictional portfolios.

Limited infrastructure creating ‘ABF gap’

Europe, however, remains far behind the US structurally and in terms of size. Cardo AI considers this “ABF gap” both the result of Europe’s fragmented regulatory regimes and limited market infrastructure.

However, that lag may prove advantageous in the long run: as European investors and managers build out their platforms, they can adapt the tested US model while avoiding early-stage missteps in data quality, servicing transparency and reporting. It’s a view echoed by practitioners within the market globally, who argue that Europe’s slower evolution gives it space to standardise reporting frameworks and embed ESG and digital-servicing practices from the outset.

Crucially, Cardo AI concurs that operational readiness is becoming the differentiator. As large asset managers expand beyond corporate credit, they must handle new forms of data, complex collateral and cross-border regulatory obligations.

Advanced technology, portfolio-level analytics and standardised servicing processes are essential - and often where tech-native partners like Cardo AI and other digital solutions come in. That technological backbone is fast becoming the key enabler for scaling the ABF market efficiently.

The growth of ABF is also being fuelled by diversification into new collateral types. Beyond the traditional asset classes seen in the public securitisation markets, into renewables, data centres, SME lending, royalties and IP finance.

Each new asset class brings its own unique structuring challenges, but collectively they illustrate ABF’s evolution from niche to mainstream. What began with socially linked mortgages, then solar PV receivables, is now finding its next testing ground in data centre assets - where private credit and securitisation are starting to meet.

Blurred line between private credit and securitisation

For the structured finance market, this shift carries several implications. As private ABF grows, securitisation techniques - such as tranching, cashflow waterfalls, warehouses and SPV funding lines - are increasingly being redeployed in private market settings.

That crossover is steadily blurring the line between private credit and securitisation, and could ultimately unlock a deeper pipeline of future public issuance as platforms mature. At the same time, it places mounting pressure on managers to deliver institutional-grade reporting, transparency and governance from day one - areas where established asset managers may now hold the upper hand.

Investor demand, particularly from insurers and pension funds, will hinge on data maturity and collateral quality. Those unable to scale their operational architecture risk falling behind in a market fast dividing into “haves” and “have-nots”. And while ABF still offers a 100bp-200bp premium over comparably-rated corporate credit, that upside comes with structural complexity and growing pressure to prove underwriting discipline.

“The opportunity in Europe lies in connecting abundant institutional capital with the real-economy assets that still depend on bank intermediation,” the whitepaper concludes. “ABF is the bridge - and established managers are now building it.”

Claudia Lewis

23 October 2025 13:06:41

Talking Point

Capital Relief Trades

SRT sceptics

Market participants refute perception of magical thinking

The SRT market is (once again) the subject of a debate regarding its role in financial stability. While critics, notably a recent FT article (So much of credit securitisation still relies on magical thinking) and an IMF working paper (Recycling Risk: Synthetic Risk Transfers), warn of systemic vulnerabilities reminiscent of the pre-2008 era, industry participants firmly defend modern practices as a safe and essential mechanism for risk and capital management. Arguably, the core disagreement centres on whether these mechanisms are benign tools for economic growth or sophisticated means to reduce prudential buffers and hide systemic risk.

The argument put forth by critics suggests that the primary function of modern securitisation, particularly SRTs, is capital arbitrage—the incentive to optimise capital rather than genuinely offload risk. As noted by the FT, the primary incentive for banks is capital relief; this “freed up” capital is then diverted to non-lending activities (e.g. dividends, buybacks), thereby lowering the systemic capital buffer available to absorb unexpected losses.

It is further argued that the risk is primarily transferred from highly regulated banks to the Non-Bank Financial Intermediation (NBFI) sector, including hedge funds and private credit funds. The IMF has highlighted that these entities are generally less regulated and utilise higher leverage, creating new, potentially less transparent, points of vulnerability and increasing system-wide leverage (last year, the IMF had already argued that certain innate SRT characteristics could increase risks to financial stability, notably the perceptions that SRTs may elevate interconnectedness and create negative feedback loops during stress, and that SRTs may mask banks’ degree of resilience because they may increase a bank’s regulatory capital ratio while its overall capital level remains unchanged).

Additionally, sceptics contend that the underlying credit risk of the reference portfolio remains unchanged. As voiced by the FT, the structure merely segments this risk, leaving the originator to retain the riskiest, first-loss “equity” tranche. Investors rely on models that have historically underestimated default correlations, especially across the economic cycle.

Finally, the theme of wider systemic linkages is also raised. Banks both originate the SRTs and may act as investors in, or funding providers to, the private credit funds that assume the risk. This circularity provides a direct channel for losses to be rapidly transmitted back into the banking system.

Market participants however, including the International Association of Credit Portfolio Managers (IACPM), have come out with strong rebuttals, emphasising the post-crisis regulatory overhaul and the instrumental function of SRTs in the real economy.

The industry asserts that the current environment fundamentally differs from the pre-crisis era due to stringent oversight: the modern European SRT market is subject to wide-ranging regulatory reforms and requires pre-trade supervisory approval under EU and UK frameworks. In this context, a market participant notes: “Whilst placing SRT, the regulator analyses the risk transferred in a very detailed way and the losses are effectively absorbed by funds.”

Furthermore, key systemic risk factors of the GFC, such as re-securitisation, are now “utterly limited by the ban on re-securitisation” and by regulation (e.g., Fundamental Review of the Trading Book (FRTB) and specific oversight on SRT repo).

Industry bodies equally counter the arbitrage claim by focusing on the developmental purpose of SRTs. Specifically, the IACPM and co-signers reject the “capital arbitrage” label, stating that: “The suggestion that these transactions are driven by capital arbitrage is mistaken. Securitisation and Significant Risk Transfer (SRT) help banks manage credit risk safely, freeing up capital to support lending to households and businesses — exactly what Europe’s economy needs as it seeks to finance the green and digital transitions.” This function is deemed central to fostering a deeper Capital Market Union by supporting new lending, particularly to SMEs and for major policy goals.

The “defence” further highlights the required transparency and structural resilience. Banks assert they fully provision and capitalise against the retained first-loss tranches and the IACPM emphasises: “When banks retain first-loss positions, they fully provision against expected losses, ensuring prudent risk management. Far from obscuring weaknesses, these structures are designed to ensure that banks’ protection is unaffected in the event of market disruption.” They add: “Investors in SRT transactions receive detailed information on defaults and losses and price their exposure accordingly.”

Finally, the IACPM equally dismisses concerns over the safety of the senior (triple-A and double-A) tranches, which are typically retained by the originating banks. It cites over 40 years of European ABS data showing their long-term performance is “comparable with equivalently rated corporate and sovereign benchmarks.”

A market source adds that the “overwhelming majority of AAA tranches are kept by banks and are not even used as collateral with central banks, they are just less risky pieces of assets.” The overarching industry view is that SRTs are a transparent, well-regulated, and effective channel recognised by policymakers as instrumental to strengthening balance sheets and supporting sustainable growth.

Vincent Nadeau

23 October 2025 16:10:27

Market Moves

Structured Finance

Job swaps weekly: BTG Pactual snaps up alternative credit veteran

People moves and key promotions in securitisation

This week’s roundup of securitisation job swaps sees BTG Pactual Global Alternatives hiring a former cofounder of CVC Credit Partners to lead its performing credit and CLO strategies. Elsewhere, Obra Capital has named a new md of real estate origination, while Wilson Sonsini Goodrich & Rosati has hired two senior team members with extensive structured finance expertise.

Chris Allen has joined BTG Pactual Global Alternatives as head of its performing credit and CLO investmentment strategies, based in New York. Allen was formerly a cofounder, partner, coo and head of structured finance origination at CVC Credit Partners. He left the firm in 2017, five years after it was founded via the merger of CVC Cordatus Group and Apidos Capital Management – which he had in turn cofounded 12 years earlier.

Following CVC, Allen spent three years as a senior md and head of structured finance at Medley Management, two years as svp of finance at Global Thermostat, and a recent period as a self-employed private equity consultant.

Meanwhile, Obra Capital has appointed Genna Zaiman as md, real estate origination. In this role, Zaiman will help to expand Obra Real Estate’s (ORE) commercial real estate bridge-lending footprint across the US, leading new loan originations and managing strategic sponsor relationships. She will be based in New York and report to Scott Larson, md, real estate at the firm.

Zaiman brings over 20 years of experience in commercial real estate to her new role, most recently serving as an md at Silver Point Capital, where she led the firm’s commercial real estate originations. Before that, Zaiman worked at Citi.

She will partner with Michael Bachenheimer, md, real estate origination based in Southern California, to coordinate nationwide business initiatives.

Wilson Sonsini Goodrich & Rosati has hired Stanford Renas as a partner in its energy and climate solutions (ECS) practice, and structured finance specialist Charles Gelinas as a member in its corporate finance practice. Both will be based in New York.

Renas joins from Katten Muchin Rosenman, bringing nearly three decades of experience advising financial institutions, energy companies, and multinational corporations on complex structured finance, project finance, derivatives, and trade finance transactions.

Renas advises clients across the energy, oil and gas, and metals sectors on the full lifecycle of financial transactions, from structuring and negotiation through execution. His work in this space includes borrowing base facilities, renewable energy projects, intermediation facilities, tolling structures, and structured commodity transactions.

He also represents clients in the securitisation and repackaging of assets and across the collateralised loan obligation market. He counsels financial institutions, insurance companies, derivatives dealers, and end users on a broad spectrum of structured products, including commodity swaps, total return instruments, credit derivatives, and repo contracts.

Gelinas focuses on structured finance and asset-backed securities, with particular expertise in fintech and consumer finance. He leaves his position as partner in the capital markets practice at Dentons after 17 years with the firm.

Gianni & Origoni has hired the entire five-lawyer team from boutique structured-finance- and distressed-debt-focused firm iLS London - Milan, led by Norman Pepe. Pepe, who founded iLS in 2018, will be based in the firm’s London office and will become an equity partner at Gianni & Origoni. The other four lawyers involved in the move, Fabrizio Occhipinti, Federico De Zan, Luca Marzolla, and Allegra Batacchi Greco, will all be based in Milan.

And finally, Medalist Partners has recruited Jonathan Lea as a vp in its capital solutions team. Based in Atlanta, he comes to the firm with an extensive background in private credit and institutional consulting. Lea was previously vp, consultant at LCG Associates, which he joined in December 2013 from Hatteras Funds.

Corinne Smith, Solomon Klappholz, Kenny Wastell

24 October 2025 13:33:46

Contents

Golden Ray 2 on the way

Investor mix and regulatory hurdles

Economics over ESG

Growth potential relies on scale

Alternative lenders distinguished by speed

Moving from regional silos to global builds

Why now – and why SPB?

Pursuing a collaborative approach

AB CarVal launches evergreen fund

KKR debuts container financing platform

Kinetic inks forward flow deal

Alternative lenders are stepping in

Regional differences

Honourable Mention: ATLAS SP

Honourable Mention: Santander Leasing Poland - EIB Group Deal

Honourable mention: USCLN 2025-SUP1 (US Bank)

Honourable Mention: BMO

Honourable Mention: Revel Partners

Honourable Mention: Verano IV (Alecta, BBVA, PGGM)

Honourable Mention: Hermes I (Magnetar, Sabadell, UniCredit)

Limited infrastructure creating ‘ABF gap’

Blurred line between private credit and securitisation