17 Mar 2025
Asset-based lending (ABL) has emerged as a flexible and strategic funding solution for private equity firms. In this insightful Q&A in Real Deals, Ben Milner and Cem Yaslak from BZ's Origination & Structuring team examine how ABL is transforming private equity transactions by providing flexible alternatives to traditional leveraged finance structures in buyout scenarios.
The article explores how ABL delivers greater certainty in uncertain markets by connecting debt facilities directly to a business’s asset base rather than just its P&L performance. This approach creates optimal headroom in deals while ensuring execution certainty - a critical advantage in today’s volatile economic landscape.
Particularly valuable is ABL’s versatility beyond initial acquisitions, effectively supporting refinancing, growth, and buy-and-build acquisition strategies. The piece also highlights BZ’s international capabilities, allowing sponsors to leverage balance sheets across multiple jurisdictions through a single lender relationship.
With private equity dry powder remaining high and ready for deployment, ABL is positioned to play an increasingly vital role in the 2025 transaction landscape and beyond.
Read the full article to discover how ABL is shaping the future of private equity transactions.
