Asset-based finance | Private debt

Innovative income and diversification opportunities

As bank disintermediation continues to reshape private debt, we provide clients with access to asset-based opportunities across hard assets (leases, auto loans), financial assets (SME and consumer loan pools), fund finance (NAV facilities) and esoteric assets (music royalties, healthcare receivables), spanning a range of tenors and risk profiles in GBP, EUR and USD.

We tailor portfolios to meet specific risk mitigation and matching-adjustment requirements.

The strength and depth of our research team is leveraged to provide robust governance and we follow a disciplined investment process that incorporates environmental, social and governance criteria. Many trades enable us to use underlying assets as collateral (e.g. aircraft or real estate) for greater security against transaction risks. Our expertise includes actuarial and derivatives pricing with strong risk controls for pension schemes and insurance clients.

Why invest?

Our philosophy centres on downside protection. We lend against well‑structured assets with security over collateral and/or predictable cashflows, supported by robust covenants and a preference toward avoiding highly subordinated positions. Within a disciplined risk framework, we selectively invest in specialty sectors and structures where complexity or novelty premia can enhance outcomes.

Bespoke structuring

Bespoke structures align investments to defined cash‑flow needs and eligibility parameters. Through detailed asset‑level credit and operational diligence, we structure for robust security and resilient risk‑adjusted returns.

Risk mitigation

We prioritise downside protection through conservative underwriting, robust collateral packages, and lender-friendly terms. Our experience managing through credit cycles informs a disciplined approach to risk, with a focus on capital preservation and resilience.

Disciplined, multi-layered risk management

Asset and portfolio‑level monitoring (covenants, watchlists, stress‑tests, regular reviews) with liquidity tailored to client needs. On underperformance, we intervene early and lead restructurings/workouts to maximise recovery - supported by specialist servicing under strict SLAs/KPIs and robust governance.

Diversification

Asset‑based finance delivers diversified, contract‑backed cash flows across multiple sectors, broadening private debt exposure beyond unsecured loans. Our selective, relative‑value approach prioritises diversification, balancing yield and security while offering access to short‑dated, lower‑risk opportunities.

Illiquidity premium

Asset‑based finance can provide access to illiquidity premia – and, in more bespoke transactions, complexity premia – reflecting limited tradability and structural nuance. Pricing responds to market conditions, and the asset class supports efficient execution, including for time‑sensitive capital needs.

Find out more about our private markets capabilities

Key risks of asset-based finance

Investment risk

The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Illiquidity risk

Certain assets could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Market risk

Changing market dynamics may undermine the relative attractiveness of structured transactions.

Complexity risk

Assessing risk implications of multi-layered transactions is challenging.

Investment insights

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

Views

Cities of the future: What will cities look like in 2050?

8 Jan. 2026

Today’s private market investments will shape 2050 cities. We explore what this could look like, and the related challenges and opportunities.
From niche to core: Asset-based finance emerges as a driving force as private debt markets continue to evolve

7 Oct. 2025

Asset-based finance is capturing the attention of institutional investors – from pension schemes to insurers – thanks to its diverse risk-return drivers and its growing role as a strategic building block in investors’ portfolios.
Illiquidity premia in private debt: Q2 2025

14 Aug. 2025

In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
Building advantage: Finding a competitive edge in European high yield real estate debt

14 Jul. 2025

While opportunities in European high yield real estate debt remain, growing competition underscores the need for deep market expertise, a robust underwriting framework, and disciplined deal selection to identify and capture resilient value.
MegaTRENDs: Why TRENDs matter for investing in private markets

27 Jun. 2025

A set of megatrends is reshaping the world, creating new opportunities and risks for investments in private markets.
Illiquidity premia in private debt: Q1 2025

16 May 2025

In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
Private debt for DC pensions: The multi-sector opportunity

11 Feb. 2025

As the search for better retirement outcomes for the 28 million members of the UK’s defined contribution (DC) pension schemes continues, where are the opportunities for DC investors in private debt and how can they be harnessed?
Relative value in private markets: Positive but selective

29 Jan. 2025

Using proprietary data, our private markets research team compares risk and return across sectors.
Illiquidity premia in private debt: Q4 2024

27 Jan. 2025

In our latest private markets deep dive, our research team crunches the data to see how evolving macroeconomic conditions are reflected in private debt returns.

Article in focus

From niche to core: Asset-based finance emerges as a driving force as private debt markets continue to evolve

Asset-based finance is capturing the attention of institutional investors – from pension schemes to insurers – thanks to its diverse risk-return drivers and its growing role as a strategic building block in investors’ portfolios.

Private Markets Study

Private Markets Study 2025

In the seventh edition of the study, we collected the views of 500 institutional investors around the world. We delved into some of the key questions facing private market investors today: Why do they invest in private markets? How do they expect the asset classes to perform over the next few years? What are the biggest barriers to investing today? And how do they incorporate sustainability?

House View

No one can predict the future. But our quarterly House View sets out the collective wisdom of our investment teams on the current state of global markets – and where they might be heading.