Cicada Partners, a credit risk management company, and Atlendis Labs, a private credit financial technology company, jointly announced a strategic and exclusive partnership to launch short-duration private credit opportunities, with an initial focus on asset-backed lines of credit.
This exclusive partnership will enable Cicada Partners to develop a private credit vertical in an operational and cost-efficient manner via blockchain infrastructure. Atlendis Labs will leverage this collaboration to build a robust risk framework and scalable underwriting process specifically to foster the growth of both borrower and lender pipelines. The overarching goal is to bring much-needed access and transparency to a traditionally difficult-to-serve and opaque asset class.
“This is a significant milestone for Cicada Partners as we continue our mission to offer accessibility to attractive off-chain assets in a responsible and cost-effective manner. Atlendis’ novel order book design sets them apart from other credit origination platforms by allowing bilateral price discovery, while the revolving loan mechanism enables operational scaling for borrowers and capital efficiency. Further, the regulatory clarity and ancillary services provided by Atlendis Flow are crucial as we introduce the offering to borrowers and lenders who are enticed by the economics but prefer to have Web3 complexities abstracted away,” Sefton Kincaid, co-founder of Cicada Partners, said.
“We are excited to partner with Cicada, whose deep underwriting expertise aligns perfectly with Atlendis’ vision. Their impressive track record in credit assessment and risk management reinforces the robustness of our DeFi lending protocol. This partnership marks a significant step towards enhancing the security and efficiency of institutional lending on public blockchains,” Charlotte Eli, co-founder of Atlendis Labs, said.
Private credit has experienced substantial growth since the Global Financial Crisis (GFC), gaining further momentum following the regional bank crisis in early 2023. The asset-based lending (ABL) strategy stands out as a strong risk-adjusted strategy amid economic uncertainties as businesses continue to adjust to a higher interest rate environment. By separating the borrowing base from the underlying corporate entity, ABLs materially enhance downside protection for lenders compared to traditional corporate cash flow lending.
