Sub-Markets

Consumer Lending Market

The consumer lending market is a sub-market of private credit that generally involves individuals of varying credit profiles borrowing money for a variety of uses from non-bank lenders and banks. The type of debt offered to these individuals broadly fall into one of two categories:

• Unsecured Credit - Debt offered to individuals such as credit cards, buy-now-pay-later loans and personal loans that are obligations of the individual to repay with creditworthiness based on credit scores or other proprietary measures of the lender

• Secured Credit - Debt offered to individuals secured by assets such as mortgages and auto loans that are obligations of the individual to repay with creditworthiness based on credit scores or other proprietary measures of the lender as well the value of the assets

Corporate Lending Market

The corporate lending market is a sub-market of private credit that generally involves companies of varying sizes raising corporate-level debt capital from non-bank lenders and investors. The type of debt raised by these companies generally fall into one of two categories:

• Venture Debt - Debt raised by venture equity capital backed companies, provided by venture debt funds or some venture equity funds

• Mid Market Loans - Debt raised by companies generating anywhere between $10 - 75 million of EBITDA and provided by private credit funds

Commercial Loan Market

The commercial loan market is a sub-market of private credit that generally involves companies of varying sizes and established track records raising corporate-level debt capital from banks. The type of debt raised by these companies broadly fall into one of two categories:

• Unsecured Loans - Debt raised by companies that are not secured by any assets of the company but rather guaranteed by the company and supported by cash flows

• Asset-based Loans - Debt raised by companies that is secured by specific real and financial assets of the company as well as guaranteed by the company and supported by cash flows

U.S. Private Placement Market

The U.S. private placement market is a sub-market of private credit that generally involves companies rated investment grade by a rating agency raising corporate-level debt capital from insurance companies and other asset managers that require a an investment grade rating. The type of debt raised by these companies generally fall into one of two categories:

• Unsecured Debt - Debt raised by investment grade companies that are not secured by any assets of the company but rather guaranteed by the company and supported by cash flows

• Secured Debt - Debt raised by investment grade companies that is secured by real and financial assets of the company as well as guaranteed by the company and supported by cash flows

Structured Credit Market

The structured credit market is a sub-market of private credit that generally involves the pooling of individual financial assets from a company looking to raise debt capital into a new entity that then becomes the borrower in a financial instruments supported by the cash flows generated by the individual assets. The type of debt raised by these companies generally fall into one of two categories:

• Credit Facilities - Debt provided to a borrowing entity by a single credit fund, bank or other capital provider that is supported by the pool of assets contributed to the borrowing entity

• Private Securitizations - Debt raised by a borrowing entity from a group of private credit investors that is supported by the pool of assets contributed to the borrowing entity