Topline: Patrick Lo Joins Saluda Grade as Co-CIO
Saluda Grade, the New York City-based asset-based financing firm, has named Patrick Lo as co-chief investment officer. He will share the role with Timothy Carr and help steer the firm's investment process while pushing a broader growth strategy for a broader asset-based finance (ABF) platform.
Lo comes to Saluda Grade after more than two decades in the field, including a recent stint as co-CIO at Waterfall Asset Management. His track record spans diversified ABF strategies, and his arrival is meant to accelerate a shift beyond the company’s traditional emphasis on real estate-backed financing.
In a note accompanying the announcement, Saluda Grade founder and CEO Ryan Craft framed the move as a natural next step as the firm expands its reach across asset classes. "Expanding our ABF platform beyond residential and commercial real estate is a natural and important next step for Saluda Grade. Patrick has a strong track record of building institutional investment platforms across multiple sectors. His experience and leadership will help us broaden our reach while maintaining the same disciplined underwriting and structuring approach that has been central to our team and success so far." Craft said.
Lo also expressed enthusiasm for the opportunity, noting that Saluda Grade has built an impressive platform and that he is eager to help the firm become a major player in asset-based finance’s evolving landscape. “Saluda Grade has already built an impressive platform, and I am excited to help them become a major player in the ever-growing asset-based finance market.”
Observers say the appointment underscores a broader industry trend as lenders seek to diversify cash-flow models amid a complex macro backdrop. The ABF space has drawn renewed interest from institutional investors looking for capital-efficient ways to finance growth across a widening set of industries.
Why This Move Matters Now
The industry has watched Saluda Grade reposition itself as a multi-faceted ABF shop that can deploy capital across structured credit, specialty finance, mortgage-backed securities and growth equity investments. The Lo appointment is intended to speed that evolution while preserving the underwriting rigor the firm has emphasized since its inception.
- Leadership alignment: Lo will work alongside Carr to manage Saluda Grade’s investment process and risk framework.
- Strategic expansion: The firm aims to widen its financing toolkit beyond real estate, including more diversified asset-backed strategies and non-traditional credit facilities.
- Scale with discipline: Saluda Grade intends to preserve its disciplined approach to underwriting and structuring as it grows.
Lo’s Background and the Firm’s Platform
Lo brings more than 20 years of experience in alternative credit and asset-based investing. Before joining Saluda Grade, he helped build and scale diversified ABF investment programs at Waterfall Asset Management, where he played a key role in expanding the platform’s reach across sectors and structures.
Saluda Grade, founded in 2019, has positioned itself as a nimble investor with a focus on asset-based channels that can offer liquidity and flexible terms even in tighter credit environments. As of January 1, 2026, the firm reported approximately $4.4 billion in assets under management, a figure that underscores the scale of its growth and the potential impact of the leadership changes.
The appointment arrives as banks and nonbank lenders navigate higher rates, a slower real estate cycle, and a shift toward more modular financing solutions. By expanding its ABF capabilities, Saluda Grade is signaling a longer-term play to deliver capital solutions across cyclical and secular growth sectors.
Data Snapshot and Market Context
- AUM: About $4.4 billion as of Jan. 1, 2026.
- Headquarters: New York City, NY.
- Founded: 2019.
- Core focus: Asset-based credit, structured credit, mortgage-backed securities, growth equity.
- Strategic goal: Broaden ABF platform beyond housing-focused financing to a broader suite of collateral and credit structures.
What Clients and Investors Should Watch
The shift toward a more expansive ABF platform could provide Saluda Grade with greater liquidity channels and more customizable capital solutions for borrowers. Clients may see more tailored facilities, expanded cross-collateralization options, and a broader set of credit enhancements designed to fit growth plans in real estate and non-real estate arenas alike.
Market participants will be watching how Lo and Carr integrate new asset classes while maintaining the underwriting discipline the firm has emphasized. The ABF space has grown more crowded in recent years as institutions seek mid-market opportunities with attractive risk-adjusted returns. Saluda Grade’s ability to merge speed, expertise and risk controls will determine how quickly the expansion translates into accretive capital deployment.
Quotes and Forward Look
Craft emphasized that the leadership transition is about accelerating growth without compromising risk controls. “Expanding our ABF platform beyond residential and commercial real estate is a natural and important next step for Saluda Grade. Patrick has a strong track record of building institutional investment platforms across multiple sectors. His experience and leadership will help us broaden our reach while maintaining the same disciplined underwriting and structuring approach that has been central to our team and success so far.”
Lo stressed his eagerness to contribute to a platform that has already attracted substantial institutional capital. “Saluda Grade has already built an impressive platform, and I am excited to help them become a major player in the ever-growing asset-based finance market.”
The industry is abuzz with the idea that saluda grade appoints patrick marks a broader, more aggressive push into ABF that could influence fundraising and deal sourcing pipelines for years to come. Analysts suggest that the collaboration could create a more resilient capital engine for mid-market borrowers and a broader pipeline of structured finance opportunities for investors.
In a broader context, this appointment comes as borrowers increasingly seek capital solutions that offer flexibility, speed and bespoke terms. The ABF space is evolving to accommodate nontraditional collateral, cross-border assignments, and more nuanced risk-sharing structures. For Saluda Grade, the Lo hire is a signal to market participants that the firm intends to be a broader capital partner, not just a niche lender in property-backed markets.
As the market digests the news, observers note that the phrase saluda grade appoints patrick has begun to appear in industry chatter, signaling a shift in how this boutique is positioning itself in the competitive ABF landscape. Whether this move translates into faster deal flow and higher-quality originations will depend on execution, investor support, and the ability to scale without diluting credit quality.
Looking ahead, Saluda Grade’s leadership team will have to balance growth with risk controls, maintain transparency with investors, and continuously refine its platform to capture opportunities across different cycles. If Lo’s prior success at Waterfall Asset Management is any guide, the firm may be well-positioned to convert this leadership turn into tangible capital deployment and long-term value for its stakeholders.
To summarize, the appointment of Patrick Lo as co-CIO reflects a deliberate strategy to expand Saluda Grade's ABF footprint while preserving the rigor that has defined the firm since its founding. As the asset-based finance market grows more complex, the coming quarters will reveal how quickly and effectively Saluda Grade can translate leadership strength into broader capabilities and stronger investor confidence. And for market watchers, the ongoing evolution of saluda grade appoints patrick will be a key headline to follow through 2026 and beyond.
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