Understanding Collateral Beyond Valuation In private credit, the significance of collateral is well recognized. Investors expect seniority, security, and a clear claim on assets. Given this assignment of collateral, asset-backed lending is intended to create more consistent outcomes across market cycles. Collateral is often described in simple terms. It exists, or it does not. It has a value, or it…
Where Private Credit Fits in a Portfolio For decades, the 60/40 portfolio has been the standard framework for long-term investors. Equities were expected to drive growth, while bonds provided income and stability. That structure has endured because, over long periods, it has worked. What investors have also seen is that the diversification provided by traditional assets has not been consistent…
Past Performance Is Not Indicative of Future Results, So, We Underwrite the Future, Not Assume It The familiar sentence appears across every corner of the investment world. Beneath tables, beside charts, inside offering documents. Past performance is not indicative of future results. We have seen this play out in countless ways across credit cycles: liquidity that expands and contracts, models…
The Architecture of Liquidity at Garrington In The Liquidity Advantage: What Investors Gain by Thinking Beyond Daily Access, we explored the real value behind less liquidity. This week’s blog continues that conversation. Here, we focus on how Garrington manages liquidity across its portfolios and how we plan, forecast, and structure access to ensure that investors benefit from flexibility without compromising…
The Liquidity Advantage: What Investors Gain by Thinking Beyond Daily Access At Garrington, we view liquidity not as a limitation, but as a strategic advantage when it’s planned, transparent, and aligned with the underlying tangible assets. The question we often hear “If I can sell a bond fund any day, why would I tie up capital in private credit even…
Staying Disciplined in a Competitive Market – Garrington’s Perspective on “The Battle for the Borrower” A recent piece by Matt Savino, Global Head of Capital Markets at The Carlyle Group, titled “Battle for the Borrower”, explored what the author sees as a growing rivalry between private credit lenders and the broadly syndicated loan (BSL) market. The article argues that as…
Tricolor – When Incentives Overrun Controls The bankruptcy of Tricolor Holdings has drawn global attention to subprime auto finance. Tricolor was a Dallas-based used car dealer and subprime auto lender serving borrowers with limited credit history. It operated at the intersection of retail car sales and consumer lending, a model that can blur incentives when sales and underwriting sit under…
First Brands – When Financing Signals Distress The recent bankruptcies of First Brands Group, a U.S.-based automotive parts manufacturer, and Tri-Color Holdings, a subprime auto lender headquartered in Dallas, have drawn global attention to the private credit and specialty finance markets. Both companies operated in sectors familiar to alternative lenders, and both collapsed amid allegations of irregular financing structures, poor…
When “Boring” Wins: Lessons From Recent Industry Bankruptcies The recent bankruptcies of Tri-Color and First Brands have caught investors’ attention and sparked questions about the health of certain corners of private credit. Both companies operated in areas that overlap with strategies often used in specialty finance, subprime auto lending, and factoring. On the surface, their collapses could be interpreted as…
Lender Finance, Revisited: A Portfolio Inside a Portfolio Some subjects are worth returning to. We’ve written about lender finance before, but like any good portfolio, the more you study it, the more it reveals. Lender finance is not just a sector in which we participate. It’s a strategy that continues to exemplify what we look for across our entire book…
