Private Securitizations

While the public securitization market in the United States alone is approximately $12 trillion in outstanding mortgage-backed and asset-backed securities, the private securitization market is rapidly growing thanks to the rise of private debt markets. Non-bank lenders servicing various niche borrower groups such as consumers looking for an advance on their wages or small businesses seeking liquidity for working capital have largely driven the need to seek more attractive financing terms for their portfolios of originated loans and other cash-generating financing assets. These private securitizations are taking place prior to reaching the scale required to appease rating agencies and gain access to the public securitization market.

Illustrative Securitization Structure and Parties

There are established asset classes, standardized deal structures and typical transaction parties that define the private securitization market in more detail below.