Private Credit

Demands of Real Economy Underpin Asset-Based Lending

November 2025 – 11 min read

In this piece, Jim Moore, Head of Private Placements and Asset-Based Finance, describe what's driving current market dynamics and shed light on what the future holds for the asset class.

Asset-based lending—a subset of asset-based finance—continues to attract institutional allocators for its diversification, downside protection and attractive risk-adjusted returns. The interest persists even as some other areas of private credit are faced with tightening supply-demand dynamics driven by creeping weakness in economies around the world. While the massive asset class has proved its mettle through boom and bust economic cycles, today investors need to carefully navigate areas of the real economy that exhibit compelling borrower dynamics and robust loan structures. Working with experienced asset managers that have strong origination pipelines and workout capabilities is key.

In this strategy Q&A, James Sackett, a principal at AB CarVal, and Jim Moore, head of private placements and asset-based finance at Barings, describe what’s driving market dynamics and investible opportunities in the current macroeconomic environment, emphasize the importance of risk management and shed light on what the future holds for the asset class.

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Headshot of James Moore smiling at the camera.

Jim Moore

Head of Private Placements & Asset Based Finance

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