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.

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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 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?

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House View

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.

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Asset-based finance team

Meet our asset-based finance investment team.

  • Munawer Shafi

    Managing Director, Head of Alternative Credit Solutions

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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.

    Learn more "Read more about Private markets"

    Private debt

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

    Find out more "Read more about Private debt"

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