Innovative income and diversification opportunities

As bank disintermediation continues to reshape private debt markets, we provide clients with access to a broad range of asset-based finance opportunities. These span hard assets, financial assets, fund finance and selected esoteric sectors, across multiple tenors, risk profiles and currencies.

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 experience includes actuarial and derivatives pricing with strong risk controls for pension schemes and insurance clients.

Why invest?

Our philosophy centres on downside mitigation. We invest in well-structured transactions secured against assets and predictable cashflows, supported by robust covenants and strong structural protections.

Within a disciplined risk framework, we selectively target complexity and sourcing premia where we believe investors are appropriately compensated for risk.

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

With decades of experience investing through multiple market cycles, we focus on capital preservation through conservative underwriting, robust collateral packages and bespoke structuring and lender protections.

Disciplined, multi-layered risk management

Asset and portfolio‑level monitoring (covenants, watchlists, stress‑tests, regular reviews) with liquidity tailored to client needs. 

Diversification

Asset‑based finance delivers diversified, contract‑backed cash flows across multiple sectors, broadening private debt exposure beyond unsecured loans. Our relative-value approach seeks opportunities across sectors and structures, helping investors diversify sources of return while balancing yield, resilience and capital preservation.

Illiquidity premium

Asset-based finance can provide access to illiquidity premia and, in more bespoke transactions, complexity premia, reflecting limited tradability and specialised structuring experience.

Pricing responds to market conditions, and the asset class supports efficient execution, including for time‑sensitive capital needs.

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.

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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.

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Private markets

As one of Europe’s largest private markets investment managers, we have the scale to access the full depth and breadth of private markets.

Private debt

We finance bespoke structured finance and senior private corporate debt transactions, seeking to meet a range of client outcomes.