Investment Strategy

While non-bank lenders have increasingly been able to address the emerging financing gap over the past years, the current macroeconomic environment comes with the need of providing specialized financing solutions.

Private credit and specifically asset-based lending has been outperforming other alternative asset classes. Driven partially by further bank retrenching, significant interest rate increases, and an acceleration of digitization and moving commerce online.

We offer investors a diversified private credit investment strategy targeting an attractive income return. Additional upside is provided through capturing equity upside in the companies we finance.

AvCap focuses on an asset-based lending investment strategy financing alternative lenders in areas such as invoice financing, revenue-based lending, consumer lending and consumer goods rentals. We generally prefer granular pools of short duration revolving exposures, allowing for more effective risk management.

The lenders and other originators we finance have compelling business models, high-quality management teams, use sophisticated technology and are able to scale up and reach profitability quickly. 

We grow our investments with our portfolio companies and support their development with capital, as well as with our expertise and network.

Our investments are generally too large and too complex to execute for private investors, but often 'under the radar' for larger players. 

We focus on maximizing risk-adjusted returns and create alignment of interest. Our disciplined focus on risk means that our investments benefit from significant overcollateralization and strict performance covenants.