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Cedric Henley, Partner and Chief Risk Officer at SLR Capital, on how to identify opportunities in the private credit space


In a recent fireside chat, Cedric Henley, Partner and Chief Risk Officer at SLR Capital Partners, shared his expert insights on identifying opportunities in the private credit space. The discussion covered a range of topics, providing valuable perspectives for investors and industry professionals.

Background and Role at SLR Capital Partners: Cedric Henley began by outlining his extensive background in credit training and banking. Currently, he serves as the Chief Risk Officer, overseeing specialty finance businesses, including asset-based lending (ABL) and equipment finance platforms.

Investment Strategy and Market Insights: Henley discussed SLR’s investment strategy, highlighting their $14 billion in investable capital focused on domestic middle-market companies. He emphasized the importance of short-term pricing strategies and maintaining flexibility in their investment approach, particularly in the current economic environment marked by rate cuts and market uncertainties.

Economic Cycles and Market Conditions: Reflecting on his career, Henley shared his experiences navigating various economic cycles, from the dot-com bust to the Great Recession and the COVID-19 pandemic. He provided insights into the current market conditions, noting the potential challenges and opportunities in 2025, including the impact of tariffs and the strength of the tech sector.

Specialty Finance and Asset-Based Lending (ABL): Henley delved into the nuances of specialty finance and ABL, explaining the differences between ABL and securitization. He highlighted the growing interest in ABL due to its better recovery rates and the search for niche investment opportunities. Henley also discussed the evolving ecosystem of ABL, noting the pullback of regional banks and the rise of private credit funds and independent lenders.

Partnerships and Brand Perception: The conversation touched on the dynamic partnerships between SLR and banks, including referrals and collaborative solutions. Henley emphasized the importance of building the SLR brand and maintaining strong relationships with borrowers and private equity sponsors.

Future Trends and Technological Advancements: Looking ahead, Henley predicted continued growth in ABL and specialty finance, driven by economic cycles and the need for diversified investment portfolios. He also discussed the potential impact of AI and automation on the industry, highlighting the importance of maintaining close relationships with management teams despite technological advancements.

Investment Skills and Industry Consolidation: Henley reflected on the evolution of his investment skills over the past two decades, noting the role of automation and improved reporting in enhancing investment decisions. He also addressed the trend of industry consolidation, predicting more mergers and acquisitions as private credit funds seek to scale.

Conclusion: The fireside chat concluded with Henley’s thoughts on the future of private credit, emphasizing the importance of prudent and ethical practices in the industry. He expressed optimism about the continued growth and evolution of private credit, driven by innovation and strategic partnerships.

Key timestamps:

00:09 Introduction to the Fireside Chats
01:48 Investment Cycles and Current Environment
03:41 Pricing Strategies in Private Credit
04:38 Understanding Asset-Based Lending (ABL)
06:17 Evolution of ABL Stakeholders
08:01 Partnerships Between Banks and Private Credit
09:25 Brand Perception and Market Positioning
10:41 Flexibility in Financial Solutions
12:11 Future Deal Origination Strategies
13:04 Investor Concerns and Future Trends
15:28 The Evolution of Investment Skills
16:16 Impact of Automation and AI on Finance
17:15 The Future of AI in Finance
18:41 Assessing Liquidity in Opportunities
19:28 Identifying Red Flags in Borrowing
20:26 The Growth of Subcategories in ABL
21:15 Predictions for ABL’s Future
22:07 Concerns About Private Credit Warnings
23:32 Consolidation Trends in the Industry
24:36 The Future of Secondary Activity in Private Credit