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With banks constrained by market uncertainty, sub lines are taking longer to negotiate.
NAV solutions are being offered to LPs facing liquidity issues.
NAV financing is now considered a well-established tool for improving fund performance, but finding a trustworthy partner is crucial to success, says Doug Cruikshank, managing partner and founder of Hark Capital.
Accessing fund finance requires specialist support if borrowers want to stay on top of this fast-changing market, says Khizer Ahmed, founder and managing member at Hedgewood Capital Partners.
Projected volumes vary wildly, but there’s little doubt that the market is growing.
The failure of three prominent fund finance lenders has turned choppy waters into a full-scale hurricane watch, says Anastasia Kaup, a partner at Fund Finance Partners.
Subscription lines, NAV finance, and employee and GP loans are being impacted in different ways by current market turmoil, say Haynes Boone’s Albert Tan, Deborah Low and Craig Unterberg.
In today’s uncertain market, borrowers need to work harder to secure financing.
LPs are generally receptive provided the loans aren’t just an attempt to add leverage.
Climbing interest rates and a reduction in credit elsewhere are spurring demand for NAV loans.