Conference Insights via Benefits Canada: Navigating Private Credit with ABL

Benefits Canada published post-conference coverage from the 2025 Alternative Investment Conference, highlighting how institutional allocators are reassessing private credit risk through the lens of asset-based lending (ABL).

Key considerations shaping portfolio decisions include:

• Senior, first-lien positioning with direct claims on collateral, reducing loss severity in downside scenarios.

  
  

• Continuous collateral underwriting via borrowing-base mechanics, enabling early risk detection and proactive intervention.

  
  

• Control rights and cash dominion, providing lenders with operational leverage through stressed environments.

  
  

• Historically higher recovery rates and shorter resolution timelines relative to cash-flow-dependent strategies.

  
  

• Return generation driven by structure and risk discipline, rather than reliance on multiple expansion or sponsor support.

  
  

As private credit continues to mature, allocators are increasingly differentiating strategies based on downside behavior, recoverability, and manager execution.

Within this framework, asset-based lending maintains a distinct and durable role in risk-aware portfolio construction.

Read the full Benefits Canada coverage to see our CIO’s insights from the event: https://www.benefitscanada.com/canadian-investment-review/post-event-coverage/2025-alternative-investment-conference-navigating-private-credit-uncertainty-with-asset-based-lending-strategies/