Arini launches first ABF fund

MFS investors including Raja’s stepson were repaid ahead of collapse

Individual investors who had lent money to Market Financial Solutions — including MFS CEO Paresh Raja’s stepson, the Deutsche Bank high-yield credit trader Rihan Dewan — received their money back last December in the run-up to the bridging lender’s high-profile collapse amid fraud allegations, according to court documents.

Blackstone agrees to acquire HSBC Australia book, scoring biggest mortgage buy in history

Blackstone has agreed the purchase of the largest mortgage portfolio in history, HSBC Australia’s A$36bn ($25bn) book. The bank had been exploring exit options for its Australian arm since last year, with National Australia Bank reported to be in the lead, but the sale was recast earlier this year as a loan book exit, with Blackstone the preferred bidder from May onwards.

Cache flow — How GPU-backed financings are breaking ground

When CoreWeave tapped the syndicated loan market for billions of dollars in GPU-backed financing earlier this year, demand was so strong that one lender described it as a “food fight.”

States move to limit litigation finance

Illinois is poised to become the latest state to limit lawyers’ ability to tap the private credit market for litigation finance. Illinois HB5487, legislation that would prohibit some midsize law firms from turning to alternative business structures for financing and restrict management services organizations, has been sent to Governor JB Pritzker’s desk to be signed into law.

Ares adopts ‘super-diversified’ strategy for new $8.5bn ABF fund

This story has been updated with information about Pathfinder II commitments’ extended re-investment period, in the second paragraph. The latest iteration of Ares’ flagship asset-backed finance strategy has pension funds and other investors willing to accept higher fees in exchange for returns as high as 15%.

AI warning signs, Part Two — It’s IPO o’clock, do you know where your credit returns are?