Company considers a deal structure that keeps control while raising funds
Bayview Asset Management is considering several liquidity strategies, including the potential sale of a minority interest and the use of a net-asset-value (NAV) loan, according to individuals with direct knowledge of the matter.
The credit investment firm, which manages approximately $20 billion in assets, has initiated early discussions as it evaluates how to raise capital. The sources, who requested anonymity due to the private nature of the talks, said no final decisions have been made.
Headquartered in Coral Gables, Florida, Bayview operates in residential, consumer, and commercial credit markets. Its investments span whole loans, structured products, credit risk transfers, and mortgage servicing rights.
The firm has not responded to requests for comment on the matter.
Liquidity moves such as NAV loans or the sale of minority stakes are being examined by a growing number of credit firms. These transactions offer alternative ways to access capital in a sector where consolidation and capital demands continue to drive decision-making.
The interest in a minority stake transaction comes at a time when investment managers are seeking ways to navigate shifting conditions in the credit market. While such a deal would involve selling a portion of equity, it would not require relinquishing control. NAV loans, meanwhile, allow firms to borrow against the value of their existing assets, often used to support operations or pursue new initiatives.
In a related development, Bayview recently established a new fund finance unit, signaling further focus on asset-based finance. Two executives with experience at 17Capital and JPMorgan Chase & Co. were hired to lead the business. This unit is expected to manage capital structures tied to the firm’s asset holdings.
Asset-based lending continues to attract investor interest as credit providers look for asset-driven strategies in a higher-rate environment.
Bayview’s current evaluation of its capital strategy takes place amid a period of recalibration for private credit firms. With investor demand, market competition, and rising capital requirements in play, firms across the sector are exploring flexible solutions.
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