Subscription Credit Lines

The hires for a new subscription lending program include four previously reported ex-Signature bankers along with six others – a larger group than Private Funds CFO had reported before.

Alternative lender says that the instruments can be spliced into tranches to attract institutional investors.

The number of new competitors in the market is growing – a good sign for a supply-constrained market.

The fall of three major lenders to private equity GP borrowers across the AUM spectrum means sub lines may be harder to get for some – perhaps even impossible. But the market has already begun adapting with new solutions.

Ex-Signature Bank managing director Trevor Freeman is making hires to build out a new subscription line lending program.

The fund of funds platform, which includes commitments to venture funds as well as private credit, continues to operate.

The bank’s fall also highlights and potentially exacerbates a large and growing supply gap in subscription credit lines.

Ratings could broaden investor base, and may open the door to a future capital markets solution for the fund instruments.

Sources say lender mix has shifted and GPs aren’t struggling to get credit.

MUFG Investor Services has snagged a well-known fund financier to head up its APAC fund finance outfit.