“We have publicly supported the idea of a multi-seller warehouse,” Mr Nicholl told The Australian Financial Review.
He said it would benefit small lenders that lacked the scale to get their costs down. “This should help them and is a good development for the market.”
The aim is for such structures to eventually stand on their own feet and allow more lenders to access debt funding from the private sector.
One of the driving forces in the consortium is Neu Capital, which is among the most active originators of debt financing for mid-market businesses.
Its co-head of deal execution, Edward Jones, was instrumental in designing the structure that was pitched to the AOFM.
He said the agency and the industry had been trying for so…