Raising Capital With a New Asset Class: Leveraging the Inherent Value of a Business’ Data to Secure Financing

Description

Facing continued economic headwinds and uneven market conditions, market participants explore and pursue unique and novel strategies and structures to generate improved returns, whether to increase liquidity or deploy ample dry powder for investing. Data asset financing has become an in-demand strategy and opportunity for borrowers, sponsors, and lenders alike due to the ubiquity of data assets, which almost all companies accrue as part of their ordinary course of business.

Although data is often viewed as a costly necessity and a byproduct, data is a strategic asset that appreciates and generates a return, making it among the most important things a company owns. As such, data assets can be harnessed and monetized to provide tangible benefits both to the companies that own them and to financing sources and other investors. When market participants approach data as a strategic asset, it can generate new avenues from recapitalization and increased investment returns.

As the world continues to become increasingly digitized and where businesses have a larger online footprint, the rate at which valuable data is both produced and accrued will continue to accelerate. Thus, data is a new asset class that (1) companies can leverage to finance their daily operations and (2) financing sources and other investors can turn to further their overall growth strategy.

Listen as our panel of experts discusses how data asset financing may be the next frontier in secured finance, allowing companies to borrow capital secured against a newly utilized pool of saleable assets while also diversifying capital structures and investment opportunities for borrowers, private equity sponsors, and lenders.