Bob Diamond and Elliot Lorenz Talk AI, Tokenization

Summary

Bloomberg Talks Podcast Summary

Episode: Bob Diamond and Elliot Lorenz Talk AI, Tokenization
Date: August 12, 2026
Host: Bloomberg
Guests: Bob Diamond (Founding Partner & CEO, Atlas Merchant Capital; Chairman of Hyper Liquid Strategies), Elliot Lorenz (Co-founder & CEO, Edge Focus)

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Episode Overview

This episode centers on the recent minority equity investment by Bob Diamond’s Atlas Merchant Capital into Edge Focus, a fintech company specializing in technology-driven capital provision and consumer credit access. The conversation dives into the transformation of credit markets post-2008, the role of AI and data in modern consumer lending, and the unique approaches that set Edge Focus apart. The discussion is rich with insights on private credit, the dynamics between traditional banks and fintechs, and the implications of technological innovation in finance.

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Key Discussion Points & Insights

1. The Investment: Atlas Merchant Capital x Edge Focus

Timestamps: 00:32 – 02:09

• Investment Rationale:

  • Bob Diamond discusses how the post-2008 landscape has shifted credit away from large banks and into a more diversified environment, enabling firms like Edge Focus to thrive.
  • He emphasizes Atlas’s criteria for investment: unique market position, strong leadership, profitability, and especially the ability and willingness to grow.
    • “What Elliot and the team have built can be multiples of this. It’s a big market.” (03:54, Diamond)

• Edge Focus Mission:

  • Elliot Lorenz outlines their dual focus: “providing capital as well as access” to large consumer lending markets, and connecting big investment firms (like Fortress) with large consumer lenders (like SoFi).
  • Noted the vastness of the sector: $200 billion in unsecured consumer credit last year. (01:45, Lorenz)

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2. What Sets Edge Focus Apart

Timestamps: 04:13 – 05:56

• Three Core Strengths:

  1. Data Access:
     • Hundreds of billions of consumer data points sourced from lending platforms, credit bureaus, and alternative data.
     • Enables real-time understanding of consumer behaviors and risk.
     • “We have access to a ton of data…hundreds of billions of data points…we know really well at all times what the consumer [is doing].” (04:27, Lorenz)
  2. Sophisticated Modeling:
     • Team of PhD researchers focusing on modeling consumer trends and credit behaviors.
  3. Platform Access:
     • Broad network of consumer lenders, allowing effective market engagement.

• Discipline Praised:

  • Bob Diamond highlights the firm's discipline as a unique advantage and a “big point” for both originators and capital providers. (05:08, Diamond)

• Targeting Near Prime and Subprime:

  • Edge Focus primarily operates in these segments for maximum impact and value. (05:34, Lorenz)

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3. Growth and Market Expansion

Timestamps: 05:56 – 06:32

• Beyond Unsecured Credit:

  • Expansion plans into auto loans, point-of-sale medical, home improvement, and partnerships with Buy Now Pay Later (BNPL) firms.
    • “We want to grow beyond unsecured…much bigger in auto, point of sale medical, home improvement.” (06:09, Lorenz)
  • Hints at imminent new deals in the alternative credit space.

• Anticipated Announcements:

  • Expect significant news and partnerships within weeks. (06:23, Diamond)

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4. Operator-Investor Dynamic & Partnership Value

Timestamps: 06:32 – 08:03

• Hands-on Support:
  • Diamond stresses Atlas’s approach: combining investment with active operational involvement—helping Edge Focus expand and connect with further capital providers.
    • “We love to roll up our sleeves, go out and visit clients, help them think about expansion.” (06:32, Diamond)
• Bringing New Investors:
  • Atlas aims to introduce Edge Focus to broader capital sources not previously engaged.
  • Existing investors include major private credit firms like Fortress; more are expected.

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5. Talent, Technology & AI’s Central Role

Timestamps: 08:03 – 09:03

• Talent Focus:
  • Top priority is hiring researchers with deep expertise in data analytics and AI.
    • “The biggest thing for us is hiring researchers, especially in the age of AI, making sure we can find folks who really understand the data.” (08:27, Lorenz)
• Technology-Driven Growth:
  • Emphasis on building internal proprietary platforms for real-time risk monitoring.
  • Plans to break into new asset classes leveraging AI.

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6. How Edge Focus Differs from Traditional Banks

Timestamps: 09:03 – 10:20

• More Precise, Data-Driven Approach:
  • Traditional banks managed risk at a portfolio level; Edge Focus operates at the individual loan level using granular data and advanced modeling.
    • “The number of gradations on that continuum are incredible. That’s what they’ve done.” (09:16, Diamond)
• Smarter Risk Management:
  • AI enables fine-tuned credit assessment, reducing broad systemic risk.

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7. The New Credit Cycle & Systemic Risk

Timestamps: 10:20 – 11:24

• “This Cycle Is Different”:

  • Market is more diversified, technology- and AI-enabled, resulting in fewer systemic shocks.
    • “I am saying the cycle is…different. Because of technology, because of AI, because of firms like Edge Focus.” (10:35, Diamond)

• Risk Remains—but Less Systemic:

  • Isolated mistakes will occur, but the likelihood of an industry-wide crisis is low unless providers neglect technology or risk oversight.

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8. Current Consumer Credit Health

Timestamps: 11:24 – 13:22

• Resilience Amid Tightening Conditions:

  • Edge Focus maintains a long position in consumer credit but relies on real-time data, AI, and continuous monitoring to mitigate risk.
    • “It’s all about having that loan level selection where we can use all the data…to ultimately buy better portfolios.” (11:49, Lorenz)

• 2022-2023 Challenges:

  • Inflation stressed consumers, but the company learned and improved its algorithms accordingly.

• Current Consumer Insights:

  • Application volumes have increased; debt-to-income ratios are rising, but delinquencies remain stable.
    • “Delinquencies are being pretty constant right now.” (13:05, Lorenz)

• Why Low Delinquencies?

  • Greater market discipline (both consumers and providers), and improved, data-driven risk management.
    • “Consumers are much more mature, much more sophisticated.” (13:36, Diamond)

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9. Investment Strategy: Minority Stake & Future Plans

Timestamps: 14:05 – 15:25

• Atlas’s Approach:
  • Patient, long-term capital with flexibility for further investment if warranted by growth. Majority ownership is unlikely except in distress scenarios.
    • “If we have opportunities down the line to add additional investment at higher valuations…that’s fantastic.” (15:12, Diamond)

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10. Market Cycle Reflections & Cautions on AI Hype

Timestamps: 15:25 – 17:01

• Current Market Drivers:
  • U.S. middle-market companies and exporters are thriving under current policies; tailwinds are strong due to less regulation and positive business climate.
    • “CEOs of Middle Market companies across the States are, are pretty excited.” (15:44, Diamond)
• AI Revolution Parallels:
  • Bob Diamond likens today’s AI surge to past technical revolutions (railroads, internet) and notes a correction will eventually come, but not imminently.
    • “With any technical revolution like this, there’s going to be corrections. It’s not going to be, one doesn’t feel like it’s around the corner.” (16:18, Diamond)
• Final Warning:
  • “Hope’s not a strategy.” (17:07, Diamond), reminding listeners to remain vigilant despite optimism.

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Notable Quotes & Memorable Moments

• "It’s all about having that loan level selection where we can use all the data…to ultimately buy better portfolios."
  — Elliot Lorenz (11:49)

• "What Elliot and the team have built can be multiples of this. It’s a big market."
  — Bob Diamond (03:54)

• "I am saying the cycle is…different. Because of technology, because of AI, because of firms like Edge Focus."
  — Bob Diamond (10:35)

• "Hope’s not a strategy."
  — Bob Diamond (17:07)

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Timestamps for Major Segments

| Segment | Timestamp | |-------------------------------------------------|-------------| | The investment: Motivation & vision | 00:32–02:09 | | Edge Focus’s unique model | 04:13–05:56 | | Expansion into new asset classes | 05:56–06:32 | | Operator-investor partnership | 06:32–08:03 | | AI, talent, and proprietary platforms | 08:03–09:03 | | Differences from traditional banks | 09:03–10:20 | | Systemic risk and technology | 10:20–11:24 | | Managing cycles & credit risk | 11:24–13:22 | | Current state of the consumer | 12:33–13:22 | | Investment strategy: Patience & future growth | 14:05–15:25 | | Bob’s cycle & market reflections | 15:25–17:01 |

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Conclusion

The episode offers an in-depth look at the intersection of private equity, AI-driven finance, and modern consumer credit markets. Bob Diamond and Elliot Lorenz articulate a vision for the future of lending: tech-forward, data-rich, and resilient. Their partnership marks another step toward the ongoing transformation of how consumer credit is sourced, evaluated, and managed. The conversation projects optimism tempered by experience—underscored by Diamond's memorable reminder: "Hope's not a strategy."

Transcript

[A]

AI is entering its most consequential phase where scale, safety and sovereignty will determine who leads and who lags. Join Bloomberg Tech in London on November 2nd and 3rd as global leaders across business, finance and policy examine the defining trade offs shaping the future of AI. Thank you to our presenting sponsor Salesforce and supporting sponsors Ida Ireland and Schneider Electric. Learn more at BloombergLive.com TechLondon.

[B]

Bloomberg Audio Studios Podcasts Radio News well, today and really just moments ago, Bob Diamond's Atlas Merchant Capital announcing a minority equity investment in Edge Focus. It's a firm that delivers technology capital and access to consumer credit. So we wanted to get the details right from the sources, the main sources. Bob diamond is founding partner and CEO of Atlas Merchant Capital Global private equity and alt asset management firm focused on the financial services sector. He's also chairman of Hyper Liquid Strategies. Welcome, welcome.

[C]

Might know a thing or two about running a big bank too.

[B]

Yes, I bet he has some stories. Also with us, Elliot Lorenz. He is co founder and CEO of Edge Focus. They as the company reminds us, delivers technology capital and access to consumer credit.

[D]

Welcome.

[B]

Welcome to both of you. Thank you for bringing this to us. I want to first get to the investment and Elliot, let's talk about this investment. What does this equity investment specifically do for you? It has to do with like operations, doesn't it?

[E]

It does. The important thing for us is being able to go into more asset classes and really invest alongside of our partners. What we do, as you mentioned Carol, is provide capital as well as access as well as several different things to the consumer lending market. We're ultimately looking to do is to

[B]

connect a massive market, by the way,

[E]

huge market, $200 million in unsecured consumer last year. We're trying to connect at the end of the day, big investment firms like a fortress with really large consumer lending firms like a SoFi.

[C]

Yeah, Bob, come on in on this investment. There's a lot of noise around credit markets, around private credit right now in particular. It's you have a very diverse portfolio at Atlas Merchant Capital. Why make this investment right now?

[D]

You know, we have seen a real unbelievable development in the credit market since 2008, the great financial crisis. And I think so much of credit ended up on bank balance sheets prior to 2008, particularly outside the U.S. you know, the big banks in France, the big banks in the uk, all the credit was on the bank balance sheets. And we have seen a real development. Some call it private credit. You know, it's Edge Focus, it's fortress. There's so Much diversification. And I think that's why we have had such a long period where without a real blip in credit, it's become, you know, it's a real credit to the US Capital markets. I think, in terms of consumer credit. And I saw this, you know, through the lens of Barclays, I saw it very much through Barclaycard, which dominated the credit card and consumer credit market in the UK is again, it's much more diverse. It can be spread a lot. And I think we have originators of consumer credit like SoFi, in Edge Focus. We have capital that likes to invest in consumer credit like Fortress. And I think one of the things that we can do together is we can find more originators, we can find more investors. And, you know, when we look for an investment, you know, you want to have someone that has a unique position in their market. That's Edge focus. You want to find someone that has strong leadership. That's Elliot and the team. You want to find a business that's profitable, but most importantly for us, you want to find a business that has both a willingness and ability to grow. And this can be a significant increase over the next three, four or five years with access to capital to grow this business. So it's unusual in financial services to look at investments where they can be multiples of where they are today. But what Elliot and the team have built can be multiples of this. It's a big market.

[B]

You mentioned unique focus that Elliot has and his team. What is that unique focus? Elliot? Because the consumer credit market, a lot of players, a lot of folks in there. What is it that you guys are doing differently? And I'm curious then, like, what you think they're doing differently. That's appealing.

[E]

We do three things really well. We have access to a ton of data, our modeling approach, and then access to various other consumer lenders. From a data standpoint, hundreds of billions of data points in the US consumer across lots of platforms. We know really well at all times what the consumer.

[B]

Where's that data coming from?

[E]

Two main sources from platforms themselves who issue loans, as well as the credit bureaus. Lots of other alternative data sources as well. From a modeling standpoint, we have PhD researchers where all they do every day is research how to model the consumer, see what the latest trends are, and then finally, access. None of this matters unless you have really good access across lots of different platforms.

[D]

Bobby, they have one more thing. They have incredible.

[B]

This is someone who did the due diligence.

[D]

We did a lot of work on this. They have incredible Discipline. And both the originators and the providers of capital love what they see here because of the discipline with their own capital capital, but also with our advice and counsel. So it's in underwriting, but also in advising.

[B]

Does that mean only certain types of consumer credit that you're going to like? Certain categories, certain types of like tell us, is it top tier? Like, what are you going for?

[E]

We look across the board. Generally speaking, we can provide the most value in near prime and subprime credit.

[B]

Near prime and subprime. Okay.

[C]

So on that, Elliot, Sofi and Happy Money are two, you know, existing deals that our Bloomberg News team has reported on. Would you think about expanding to, I don't know, other places, like Buy now, pay later firms, for example?

[E]

Absolutely. I think it's part of the reason for the investment. We want to grow beyond unsecured, which we're really big in right now. We're getting much bigger in auto, we want to be in point of sale medical, we want to be in home improvement. There's a ton of areas for us to grow into.

[C]

What are some. Are you talking right now to any specific Buy now pay later firms or any of those firms in the spaces that you just mentioned? Right now?

[E]

Many of them. Absolutely.

[C]

So we should expect deals to be.

[E]

Absolutely. LPs are asking for it as well.

[C]

Okay.

[E]

Got really neat characters.

[C]

Do you think that.

[D]

Do you think you're going to have a pretty big announcement in about two weeks? So I love this.

[B]

So you guys got to come back date. But that's appealing to you, that part of the market?

[D]

You know, Carol, as I said, it's about a unique position which they have. It's about strong leadership. It's about profitability. But most importantly, what we love is we're not just great investors, we're great operators. We love to roll up our sleeves, go out and visit clients, help them think about expansion. And when you look at a business that is this disciplined and this profitable and this focus with the market out there in consumer credit and beyond consumer credit, it's just this is exactly the kind of investment that gets us up in the morning.

[C]

Well, so then what are you going to do, Bob, for Elliot and his team? You know, you said you guys like to roll up your sleeves. You're making this injection of capital. You're now a minority owner in the firm. That's just the beginning. Right.

[B]

Do you have an.

[D]

First and foremost, when Carol and Tim call, I come here to rum.

[C]

I like that. Maybe. I mean, they're down Denver, so maybe you could go do some skiing this winter.

[B]

It's out in the ether now, so.

[A]

But yeah, how involved?

[B]

It sounds like good old fashioned.

[D]

Fortress is a great partner. Yeah. There are other institutions that David Seamus and I and Brian Saunders have been very close to over the years and other investments are in our career. And you know, David was with, with with JC Flowers and my time at Barclays. We know a lot of people that would be interested in being capital providers. But until now they have not heard about Edge Focus and they have not heard about the business model.

[B]

Who are the investors already involved with you? What other investors might be coming in? You talk about the capital providers. Like who, who are we talking about?

[E]

All the really large private credit firms you've probably heard of. Like I said, we've talked about Fortress publicly quite a bit. Several others as well.

[B]

Okay, so more?

[D]

Yes, more.

[C]

You know, I noticed in the press release that this is focused on hiring efforts. Part of this injection of capital, partly focused on hiring efforts to build out a big part of your team. I'm curious about talent that your firm is targeting in a market that's really,

[E]

really competitive, incredibly competitive market. The biggest thing for us is hiring researchers, especially in the age of AI, making sure that we can find folks who really understand the data, can use our tools effectively, efficiently. It's one of the most important things for us. Over two, there's our firm is technology based.

[B]

What goes further? You're already very technology focused, AI focused. I'm curious, what's the next step? Where do you go with all of

[E]

this new asset classes? We've done a lot of consumer unsecured, we have a long way to go in subprime auto, we have a really long way to go in point of sale. And there's several other asset classes for us to get into.

[C]

Bob, provide some context here. Given your history in banking and you know how what Elliot Elliott's firm is doing in your view is different from the way that a big bank can profile a consumer?

[D]

I think it's a number of things, but I think first and foremost, you know the traditional banks prior to 2008, just a very, very different approach to managing what was in their portfolio. You see the quarterly earnings and you'd see a little bit of provision here and provision there. But it was not really asset or loan specific. Even in Barclaycard, which was really consumer credit and unsecured consumer credit, it didn't have the depth of this. So it's the incredible discip and the incredible technology that they've brought to understanding Credits so that the separation from kind of near prime to prime and subprime and things like that, the number of gradations on that continuum are incredible. And that's what they've done. So they're much, much better at managing access to credit and the return that comes from credit. And I think we've seen it broadly in the market, like since 2008, we haven't had a blip in credit. We've never had a cycle quite like this. And I don't think it's about to stop.

[B]

Yeah.

[D]

Because there are so many more participants, so much more technology, artificial intelligence that's being applied to analyzing the risks associated with every single piece of credit.

[C]

Are you saying this time is different?

[D]

I am saying the cycle is.

[C]

This cycle is different. Okay.

[D]

Because of technology, because of AI, because of firms like Edge Focus. Yeah.

[B]

Okay, Meaning that.

[D]

But by the way, it doesn't mean there won't be mistakes.

[B]

Right, right.

[D]

People that don't use that technology, for people that don't use Edge Focus, you know, there will still be mistakes, but I don't think they'll be systemic. They're not going to be across the piece. They're not going to be a crisis for the industry. They may be a crisis for an individual fund.

[B]

So in other words, not just that the risk is spread, but if somebody who doesn't have the great oversight or

[D]

risk, there'll still be mistakes made. Carol? Yes, absolutely. And I think what will separate Edge Focus is more and more people are going to want to have access to people like Elliot and his team so they can move into that echelon without trying to build it themselves.

[B]

So let me ask you, there are always cycles. And I'm just curious how exposed Edge Focus is specifically to consumer credit. And how will you guys be protected if ultimately we see financial conditions tighten? We are. Things go through cycles and then we start to see end user delinquencies increase significantly. I mean, these things happen.

[E]

Absolutely. We're very long consumer credit, there's no question about it. At the end of the day, we need to.

[B]

But what do you do to mitigate risk?

[E]

Like how it's all about having that loan level selection where we can use all the data we have at the individual borrower level to ultimately buy better portfolios of assets for investors.

[B]

So you're just, you're saying the data, the algorithms, the AI and we also

[E]

have to monitor really well too. We've built out tons of proprietary internal platforms where we can watch this stuff in a real time basis, understand exactly how the consumer is evolving.

[B]

And so far, in terms of issues that have gotten you into trouble, like what percentage?

[E]

I mean, look, there's no investment that's ever perfect, right? There's 2022, 2023, for example. Inflation was really challenging on the consumer, there's no doubt. But you learn a lot from that. You add into your algorithms, you add into your models, and ultimately you create a much more sustainable, defensible platform.

[C]

Well, Carol brings up a good point. And you know, what I heard from you just now speaks to what it sounds like. You have this, what you think is a very solid real time view of how consumers are doing. We try to figure that out each and every day on this program by looking at data that we get from the Fed, data that we get from different bureaus, alternative data as well. How is the consumer doing?

[E]

Yeah, we have a lot of really cool insight into how the consumer is doing. What I can tell you is that applications continue to increase across all the platforms we have. Applications are up year over year on.

[C]

Is that a good thing?

[E]

You know, we're actually seeing delinquencies stay very, very consistent.

[C]

But consumers need more credit.

[E]

They are. And we're actually seeing an increase overall in debt to income ratios across consumers. So although the consumer looks to be needing some more credit and that's being shown in the applications, delinquencies are being pretty constant right now.

[B]

Why is that? Like, what do you like when you look at that cycle or that data, those data points, which part of it where you said that debt to income, right, is rising and yet delinquencies are low? How do we explain that?

[D]

You know, I think it's more discipline in the system and more providers of capital. So I think the same thing I Talked about since 2008, on the investor side or the bank side, in terms of their portfolios, I think consumers are much more mature, much more sophisticated. So. So it's not surprising that you would see less of an increase in delinquencies than then than you would in the amount of outstanding credit. That would be unsurprising.

[C]

So, Bob, this is a minority investment in Edge Focus right now.

[B]

Are you going to ask when it's going to be a majority?

[C]

Yeah, that's exactly what I was going to ask. Is this the beginning of something?

[D]

Perfectionist. Never.

[C]

Is this the beginning of something or

[D]

is this absolutely the beginning?

[C]

Is there going to be more money coming from you or do you think this is enough for them to go out, do their thing and then there's an exit at the end, I think

[D]

the beauty of being Atlas Merchant Capital is a couple of things. One is our investors are very, very patient. If we go to them in three or four or five years and say, this isn't going to be a normal cycle, we want to stay in this longer. We have a number of large sovereigns. The biggest issue they face every day is reinvestment, not exit. So we have that option in terms of the relationship we have with our investors. But I think most importantly, if there was need for more capital because the business is growing and valuations are going up, that's a good presentation for us. It doesn't mean we would go to majority. That would be unusual and that might be in a distress situation, which would be the furthest thing from our mind in this situation. But if we have opportunities down the line to add additional investment at higher valuations because the business is growing both in terms of products and in terms of customers and clients, that's fantastic.

[B]

So we'd be remiss. We've only got about a minute or so left here. Bob, you have seen, you know, iconic for anybody who's watched Wall street and financial markets, you've seen a lot of different cycles. Good, bad, different. What do you make of this market cycle, which is there's angst and yet we hit records. And how do you make sense?

[D]

Well, I think two things, Carol, and I think on the one side, and I see this, I've been very, very fortunate to be the chair of the advisory board for the US Export Import bank with John Jovanovic and the team. And they, for the first time in decades, are profitable. They are really driving performance with middle market companies across the us and what shocks me is how profitable they are. What shocks me is how excited they are at the tailwinds coming from this administration in terms of less regulation, more pro business. And so the CEOs of Middle Market companies across the States are, are pretty excited, I think. I think in terms of the cycle with AI that people are talking about, and I suspect that's the other piece it is. I think there'll be a correction. There'll always be a correction. Every technical innovation we've had from railroads, from electricity, from the Internet, will have a massive correction at some point. It doesn't feel like it's going to be tomorrow. But you know what, with any technical revolution like this, there's going to be corrections. It's not going to be one doesn't feel like it's around the corner. But I can assure you there'll be a correction. I just can't assure you when it's going to be.

[B]

I don't know. Everybody keeps talking about it's good till 2030 and then it's like a good.

[C]

I feel like that's just what the hype.

[D]

Hope's not a strategy.

[B]

That is so true. Gentlemen, when you have more news, please come back.

[D]

Thank you.

[B]

We really enjoy this and thank you for giving us this opportunity.

[E]

Thanks for having us.

[C]

Bob diamond, founding partner and CEO of Atlas Merchant Capital. Also, he's chairman of Hyper Liquid Strategies, among many other things. Also here, Elliot Lorenz, the co founder and CEO of Edge Focus. Guys, thanks a lot.

[B]

Thank you. Thank you.