Morgan Stanley Investment Management has closed a revolving and rated private securitization backed by consumer personal loans, marking the first asset-based finance securitization from its AIP Alternative Lending Group.
The transaction, Multi-originator Structured Asset Based Finance Trust 2026-1 (MSABF 2026-1), is a revolving, pre-funded private securitization backed by consumer loans underwritten by multiple leading originators. The deal includes multiple tranches of investment-grade notes rated by KBRA, a nationally recognized statistical rating organization.
The transaction’s total loan purchase capacity is estimated at approximately $220 million, offering scalable exposure to consumer credit within a long-term financing structure. The AIP Alternative Lending Group focuses on allocating capital to loans underwritten by fintech-driven alternative lending platforms across multiple borrower types.
As of December 31, 2025, Morgan Stanley Investment Management and its investment advisory affiliates oversee $1.9 trillion in assets under management or supervision and employ more than 1,400 investment professionals globally. The firm provides investment management solutions to governments, institutions, corporations, and individuals worldwide.
Support: Morgan Stanley AIP GP LP, a subsidiary of Morgan Stanley Investment Management, serves as the Trust Administrator for the transaction.
KEY QUOTES
“This transaction reflects our continued progression in structuring durable and innovative capital solutions for investors. MSABF 2026-1’s revolving and rated structure provides diversifying exposure to consumer credit, an asset class to which many investor portfolios remain meaningfully underexposed. Our structure was designed with intentionality to address the needs of both insurance clients and asset managers, while offering our loan origination partners stable funding that supports their continued growth. For insurance capital, MSABF 2026-1’s structure addresses key considerations, including rated tranches, predictable cash flows, and a long-term reinvestment framework. We believe this structure enables insurers to efficiently access consumer credit exposure while maintaining alignment with their asset-liability management objectives.”
Ken Michlitsch, Managing Director, AIP Alternative Lending Group, Morgan Stanley Investment Management
