Cedric Henley joined SLR Capital Partners in 2007 and now serves as Chief Risk Officer of Specialty Finance. A founding member of the firm, Henley has worked closely with private equity firms and strategic companies across industries including aerospace, defense, gaming, chemicals and consumer products.
As Chief Risk Officer, he emphasizes diligence to ensure accuracy and avoid financial issues.
“Valuing, structuring, and monitoring collateral bases is an art that takes many years to perfect,” Henley says. “Our team has been in this business for over 30 years.”
He sees a lack of discipline as a key risk in specialty finance. Over-advances on collateral beyond traditional working capital are becoming more common, which he believes increases financial vulnerability. “We view thoughtful upfront structuring as the best way to be there for our clients long-term,” he says.
With over 35 years in risk management, Henley believes ABL loans require constant, hands-on oversight from experienced professionals. “Asset-based lending is a very hands-on business,” he says. “We use technology for real-time insights, not to replace sound judgment.”
He acknowledges that AI can detect risk trends early, potentially improving outcomes for borrowers and lenders.
At SLR, Henley has overseen risk across multiple acquisitions. SLR Investment Corp. has acquired Credit Solutions and seven ABL firms. He encourages collaboration and consistent underwriting standards across all teams.
“As asset managers seek revenue growth, there’s temptation to ease underwriting,” Henley says. “But it’s in our DNA to maintain a strong risk management culture.”
He predicts nonbank lenders will gain market share as regional banks retreat — a trend decades in the making.
“Our ABL team has weathered multiple cycles, including the Great Financial Crisis and COVID-19,” he says. “If it feels like a bad investment — it is.”
