East & Partners

Private Credit’s Next Frontier – Asset-Based Finance

USA
Carlyle Group
Asset Finance, Private Credit

(3 March 2025 – United States) Carlyle Group is targeting asset-based finance as its next major growth opportunity for Private Credit with a projected total addressable market (TAM) of US$25 trillion.

 

Private Credit managers have targeted the asset-based finance market as a potential area of growth. Asset-based finance is a type of lending backed by a pool of assets, such as mortgages or consumer loans.

 

Credit markets are poised to grow, with Carlyle positioning itself to capture a significant slice of the expanding sector.

 

“Credit will continue to get bigger there’s no question about that in my mind. The addressable asset-based finance market could swell to as much as US$25 trillion. There’s around US$200 trillion of wealth assets out there and two percent is invested in alternative markets, so we’re looking at new products. We spend a lot of time thinking about liquidity risk in our products. Our firm manages this from the top of the house” commented Carlyle Group COO Lindsay LoBue.

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