TLDR:
Viola Credit and Cadma Capital are forming a joint venture to offer up to $500 million in asset-based financing to private tech and growth companies. This partnership is in response to the growing trend of asset-based lending becoming more popular in the venture capital and private credit space.
- Viola Credit and Cadma Capital are joining forces to offer asset-based financing to private tech and growth companies.
- The asset-based finance asset class is projected to grow to $7.7 trillion over the next five years.
Two firms specializing in asset-based financing for technology companies, Viola Credit and Cadma Capital, are teaming up to provide up to $500 million in such finance to private companies in the tech industry. This collaboration aims to capitalize on the increasing popularity of asset-based lending in both the venture capital and private credit sectors.
Cadma Capital, an affiliate of Apollo Capital Management, is a key player in bringing asset-backed lending to the private markets. With the private asset-based finance asset class projected to grow to $7.7 trillion over the next five years, this joint venture is poised to meet the growing demand for such financing solutions in the tech industry.
Asset-based lending offers a more affordable form of financing in a high-interest rate environment, making it an attractive option for young companies that may not have achieved profitability yet. This type of financing is seen as a safer alternative to venture debt, especially in a market where equity fundraising has slowed down and IPOs are distant prospects.
Viola Credit, with over $2.5 billion under management, has a strong track record in asset-based lending transactions for various tech sectors. The partnership with Cadma Capital will enhance their ability to support technology-enabled lenders with a range of asset-based financing solutions, further solidifying their position in the market.
Cadma Capital’s President, Josh Brody, highlighted the significance of this deal in expanding Cadma’s reach in asset-backed credit origination. By leveraging Viola Credit’s expertise and proven track record, Cadma aims to strengthen its origination strategy and partnership model with leading venture and growth firms.
