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Risks and rewards of investing with a “niche” asset backed player
How would you as a practitioner define a “niche” player?
I would define a “niche” player as someone who has access to a particular and specific competitive advantage. In asset-based lending (“ABL”) the manager will usually have a unique competitive advantage to originate deals within his/her particular area. “Niches” can be characterized as either geographic or collateral-specific or both. For example, someone may have access to finance timber receivables in Oregon. This is obviously a very “niche” opportunity with respect to both geography and collateral
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