Private credit is moving beyond its traditional focus on corporate direct lending, with investment managers pursuing a wider range of asset-backed financing strategies.
According to McKinsey, closed-end funds pursuing asset-backed finance opportunities raised approximately $27.1 billion in 2025, accounting for 16.4% of all closed-end private credit fundraising.¹
For lenders, moving into new asset classes means working with different cash flows, financing structures, and operational requirements. A firm with deep experience in corporate credit may need a different approach when financing receivables or other asset-backed transactions.
Can the banking relationships that work for one financing model support the next?
New Opportunities Bring Different Demands
For asset-based lenders, different financing structures bring specific requirements for account controls, collections, and reporting. Those arrangements must provide the visibility required under the credit agreement while allowing borrowers to manage their daily operations.
Across a growing portfolio, maintaining consistent oversight can become more demanding. Each borrower may have different cash management needs, requiring lenders and their banking partners to accommodate those differences while maintaining appropriate controls and reporting.
The work also continues after funding. As borrowers’ businesses change, their banking needs may change with them. Lenders still need reliable visibility into cash activity, and the arrangements established under the credit agreement must continue to function as intended.
For firms expanding into new financing strategies, this raises a broader operational consideration. Growth means establishing and maintaining banking relationships across an increasingly varied portfolio, often with different requirements from one facility to the next.
The challenge is maintaining consistency without losing the flexibility needed to serve individual borrowers.
A More Specialized Role for Banking Partners
As private credit managers develop expertise in particular assets and financing structures, banks have an opportunity to build similar expertise in the treasury services those strategies require.
Most commercial banks can provide underlying capabilities. What matters is how effectively those services are coordinated around the lender’s financing structure and the borrower’s operating needs.
Consider the requirements of an asset-based credit facility. Establishing controlled accounts, collection arrangements, and reporting may involve coordination among several parties, often within a defined transaction timeline. The bank needs to understand how those elements fit together and what the lender’s credit agreement requires.
That understanding remains valuable after the initial implementation.
For lenders managing multiple facilities, familiarity with recurring requirements can help create a more consistent approach to cash management and reporting. Rather than navigating an entirely different banking process with each new relationship, lenders can work with a partner that understands their expectations while accommodating the needs of individual borrowers.
This is where a more specialized banking model can offer value.
A bank familiar with a lender’s financing structures can bring that knowledge into account setup, ongoing service, and conversations about changing borrower needs. Over time, that familiarity may make it easier to coordinate treasury arrangements across a growing portfolio.
There is a benefit for borrowers as well. Financing agreements establish the controls lenders require, but businesses still need practical ways to collect payments, manage liquidity, and operate day to day. A banking partner that understands both sides can help those needs work together.
For specialty lenders, this changes the role a banking relationship can play. Treasury management becomes part of how the firm operates across its portfolio, with the bank providing services informed by the financing arrangements rather than treating each account or product independently.
That creates an opportunity for banks to differentiate themselves through expertise in the lending models they serve and consistency in how they deliver their services.
A More Tailored Approach to Treasury Management
TriState Capital Bank recently introduced a national Treasury Management offering developed for specialty lending relationships.
The offering combines coordinated implementation with controlled accounts, DACA support, lockbox services, and reporting designed to provide lenders with greater visibility and control over borrower cash activity.
TriState also emphasizes a repeatable treasury management model intended to bring greater consistency across facilities. Its approach is designed to align banking arrangements with lender requirements while accommodating differences between borrowers.
For borrowers, the offering includes payment services, fraud controls, and liquidity solutions, along with a single point of contact for treasury management support. These services help businesses manage their daily cash operations while meeting the requirements of their financing arrangements.
Banking’s Place in the Next Phase of Growth
As specialty finance continues to diversify, lenders will have more opportunities to pursue financing strategies tailored to particular assets and borrowers. The banks working alongside them have an opportunity to develop deeper expertise in what those strategies require.
That expertise could become increasingly valuable as lenders look for ways to manage growth without adding unnecessary complexity to their operations.
The banks best positioned to serve this market may be those that understand the financing as well as the banking behind it.
Learn more about TriState Capital Bank’s specialized Treasury Management offering.
Contact us to discuss: TriStateDeposits@tscbank.com
Non-deposit products are: Not insured by the FDIC; Not deposits; May lose value; Not Bank guaranteed.
TriState Capital Bank is a Pennsylvania chartered bank. Member FDIC.
Source
¹ McKinsey & Company. “Private Credit in 2025: A Maturing Industry Navigates Change.” Global Private Markets Report 2026, June 9, 2026. Section: “Asset-backed finance.” Based on McKinsey analysis of Preqin data accessed April 2026.
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ABOUT TRISTATE CAPITAL
TriState Capital Bank is headquartered in Pittsburgh, Pennsylvania, and provides commercial banking, private banking and treasury management services to middle-market companies, institutional clients and high-net-worth individuals. TriState Capital Bank serves middle-market commercial customers through regional representative offices in Pittsburgh; Philadelphia; Cleveland; Edison, New Jersey; and New York City, as well as high-net-worth individuals nationwide through its national referral network of financial intermediaries. TriState Capital Bank is a wholly owned subsidiary of Raymond James Financial Inc. (NYSE: RJF), a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. TriState Capital Bank is a Pennsylvania chartered bank.
Contact us to discuss: TriStateDeposits@tscbank.com