Higher Returns, More Protection
The formula for financial freedom is solid, consistent performance. This is why investors are increasingly turning to asset-based credit - our specialty.
SCIO is an award-winning credit manager which specialises in asset-based lending. Our investment team averages 26 years of experience sourcing, structuring, and underwriting asset-based loans.
Investors benefit from investment secured by assets and contractual, predictable cash flows. This is how SCIO funds consistently provide strong risk-adjusted returns year after year.
The Safe Harbour During Financial Storms
Corporate bonds may seem like a compelling alternative, but their returns depend on the issuer's performance. Asset-based credit returns, on the other hand, depend on cash flows of the underlying assets - a significant benefit during periods of economic uncertainty or higher inflation.
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What Our Borrowers Have to Say
SCIO Capital has been transformational in our funding journey.
By providing flexible debt capital, SCIO has been a great collaborator, quick decision maker, and dedicated to understanding the complexities of our business as we work toward continued impact through the transformative power of education – as well as being (occasionally) funny, human, and pragmatic to work with. Everything you need in a partner.
A great collaboration and a good sparring partner.
SCIO has helped us extremely well with the implementation of our new funding structure. They enabled us to further expand our leasing proposition and build out the LFH business for the future. We have found SCIO a very accessible and creative sparring partner in the process.
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Simply put, a great long-term funding partner.
SCIO, in my opinion, is the most complete and solutions orientated alternative lender in the Irish market. Having worked with them on numerous projects over the last several years, I have found them to be easy to work with, highly collaborative and professional at every stage of the funding process.
Differentiated Product, Not a Commodity
SCIO targets a niche market, allowing us to negotiate better terms and pricing for our loans. As these markets are small, they have less competition. They are more complex than corporate lending, thus requiring specialist knowledge. These two aspects serve as a barrier to entry for new competitors. Larger entities also find them unappealing due to their size. This allows us to utilize the niche and provide exceptional returns to our investors.
Thinking of private credit? Usually, corporate lending will come to mind. It can take several forms, either a loan from a bank or an issuance of debt into the market. But there is a key problem with this product: it relies on future profits from the borrower to repay the loans. If the firm is unprofitable, the loans will not be repaid in full, or at all.
We minimize this risk for investors by focusing on asset-based lending. Assets secure the loan. Even if a borrower is unprofitable, we can sell the collateral for repayment. Thus, investor capital is protected.
Funds usually target private asset-based loans or asset-backed securities. Rarely both. Why? Because private lenders hardly have the required expertise to navigate public markets. They are either bankers or lawyers, not traders who have the expertise to source, structure, and underwrite private loans.
We have both, allowing us to participate in both public and private markets. As we have expanded our range, we have gained a competitive advantage, from which our investors benefit.
One of the key benefits of asset-based loans is their collateral diversity. Hundreds, if not thousands, of underlying assets support them. Yet, this also makes them more complex. Proper analysis requires complex statistical analysis. Our team has the requisite training and experience to undertake this analysis.
Furthermore, dealing with underperforming loans requires experience. Our investment team is one of the most experienced in the market. This allows us to maximize the value of underperforming loans. The result is better performance for our investors.
