Fund Finance Report 2024

From subscription lines to NAV loans, fund financing continues to bolster investors’ capital options

Fund finance markets continue to evolve, especially in the area of NAV lending. In our Fund Finance Report for 2024, we look at the surge in demand for NAV finance amid a slump in M&A markets and ask just how the market has responded to last year’s collapse of three of the most prolific providers of subscription facilities.

COVER STORY

Businessman standing in front of glowing portals

Fund finance is a market in flux

Magazine
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Depressed fundraising hits subscription finance, but M&A slump boosts demand for NAV
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KEY TRENDS IN FUND FINANCE

FURTHER ANALYSIS

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PREVIOUS COVERAGE

2023

Magazine

Five key trends shaping fund finance

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The fund finance market is finding ways to adapt amid economic uncertainty.
Magazine

Crucial questions about NAV: What are the use cases for NAV finance today?

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Climbing interest rates and a reduction in credit elsewhere are spurring demand for NAV loans.
Magazine

Crucial questions about NAV: Will rising interest rates curb demand?

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Opinions are divided on exactly what the recent rate spike means for NAV financing.
Magazine

Crucial questions about NAV: Is NAV financing a valid alternative to a secondaries sale?

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NAV solutions are being offered to LPs facing liquidity issues.
Magazine

Crucial questions about NAV: Who are the main lenders in the NAV market?

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Non-bank lenders are becoming more prominent as banks retrench.
Magazine

Crucial questions about NAV: What do LPs really think about NAV finance?

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LPs are generally receptive provided the loans aren’t just an attempt to add leverage.
Magazine

Crucial questions about NAV: How big could NAV finance get?

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Projected volumes vary wildly, but there’s little doubt that the market is growing.
Magazine

Mixed signals for fund finance

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What do soaring interest rates and economic uncertainty mean for subscription lines, GP loans and the burgeoning world of NAV finance?
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Testing times: The questions everyone is asking about NAV

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A burgeoning asset class is facing its toughest test yet. Will NAV finance emerge from current market turmoil stronger than ever?
Magazine

Longevity is key in the shrinking pool of lenders

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In today’s uncertain market, borrowers need to work harder to secure financing.
Magazine

Borrowers seek flexibility in a lenders’ market

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With banks constrained by market uncertainty, sub lines are taking longer to negotiate.

2022

Magazine

The big questions every CFO should be asking about fund finance

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The fund finance industry is experiencing exponential growth, but there are a number of issues that borrowers need to address
Magazine

What do my LPs think about fund finance?

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There is now a broad consensus that benefits in terms of treasury management outweigh the disadvantages
Magazine

How will fund finance fare in a downturn?

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Subscription finance’s fortunes will depend to a large extent on the performance of the fundraising markets
Magazine

Is there enough lending capacity to meet demand?

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Institutions are stepping in to fill the growing demand for capital call facilities
Magazine

How do I choose a lender?

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Borrowers are facing more options than ever, creating a selection challenge for CFOs
Magazine

How is ESG impacting the fund finance market?

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ESG criteria are increasingly used to provide rate discounts, but some question the benefits of these facilities
Rocket ship illustration
Magazine

Just how big can this market get?

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Only two years ago, the accepted ceiling for the subscription line market globally was $500bn, a figure now seen as wildly underestimated. Meanwhile, NAV financing is poised for meteoric growth
Fund Finance

Q&A with Blue Wolf Capital on subscription finance

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Joshua Cherry-Seto, CFO at Blue Wolf Capital, believes subscription lines are a critical part of working capital.
Magazine

LPAs continue to stand in way of NAV financing

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Fund finance lawyers are working around some complex clauses in limited partner agreements
Magazine

The rise and rise of ESG-linked lending

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ESG-linked subscription lines are becoming more common, with the market evolving quickly on both sides of the Atlantic
Magazine

LP views on the future of fund finance

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Subscription and NAV financing are increasingly accepted by LPs, but transparency is key

LATEST FUND FINANCE NEWS

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HSBC enters sub-line securitization with ICG deal

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The bank will hold the senior tranche, though it hasn’t ruled out syndications in the future.
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News & Analysis

17Capital parts ways with senior exec entrusted with Dubai office launch

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The departure comes six months after the firm said it was opening in the UAE to deepen its push into the Gulf region.
News & Analysis

New NAV loan index offers some surprising insights

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Debt advisory firm Fund Finance Partners unveiled the first index of the buyouts NAV loan market
News & Analysis

AlpInvest’s ‘musical quartet’ fund interest ABS enchants investors

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Diverse collateral mix of secondaries, portfolio finance and co-investments helps Carlyle unit close above target on $1bn.
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News & Analysis

Rated note feeders in flux – Part 4

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In the final installment of this guest article, Seward & Kissel partners Greg Cioffi and Jeff Berman peer into the future of the RNF market and highlight the importance of using bankruptcy remote structures.

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