Asset-based finance

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

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European infrastructure debt enters 2026 in a healthy position, with no shortage of demand for its diverse range of opportunities. Nonetheless, investors need to be alert to various risks and conduct thorough due diligence, argues Darryl Murphy.
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Today’s private market investments will shape 2050 cities. We explore what this could look like, and the related challenges and opportunities.
Boosting low-carbon investment in the UK: 2025 Roadmap Update

11 Dec 2025

In 2024, we outlined our view on the most important public-policy interventions to unlock private investment in the low-carbon economy. In this update, we take stock of policy developments since, and look ahead to 2026 and beyond.
Navigating nature: Opportunities for the investor of tomorrow

10 Dec 2025

Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.
Purposeful run-on: A credible alternative to buyout

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Discover why purposeful run-on is emerging as a credible alternative to buyout for well-funded defined benefit (DB) pension schemes – and how it can unlock long-term value while keeping clients' needs at the centre.
Beyond buyout: Why DB schemes are reconsidering their endgame

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Significant shifts in the defined benefit (DB) pension schemes landscape mean that as schemes mature, trustees and sponsors now face a broader spectrum of strategic choices. We explain why the choice between buyout and run-on is no longer binary.
Illiquidity premia in private debt: Q3 2025

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Having crunched the data, our private markets research team looks at how evolving macro conditions are impacting private debt returns.
Aviva Investors’ Social Value Label: Recognising achievements during construction

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The newly launched Aviva Investors’ Social Value Label recognises quality practice in the construction supply chain. It will be awarded to contractors who deliver social value when building commercial real estate.
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.
Solid foundations: The case is building for infrastructure equity

3 Oct 2025

In this article Viktor Dietrich, Research Director for infrastructure, venture capital and natural capital, revisits the case for investing in European infrastructure equity. He suggests reasons why small-to-mid-sized opportunities should feature prominently on investors’ radar.
Energy-intensive industries: Unlocking low-carbon investment

16 Sep 2025

Vital industries for UK growth like steel or cement are also energy intensive, and their decarbonisation is essential. We convened a roundtable of experts to discuss barriers and solutions to unlocking low-carbon investment opportunities.
RELI’s return: Why real estate long income (RELI) has a growing fanbase

11 Sep 2025

After falling out of favour following the 2022 UK mini-budget crisis, real estate long income is making something of a comeback. Fund managers Renos Booth and Kris McPhail explain why it is starting to attract interest from a variety of investors.
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.
Show me the value: Investing in carbon removal, part three

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In this article, we explore the potential benefits of carbon removal strategies for institutional investors.
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.

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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.