Fund Finance Report 2025

Private Funds CFO’s annual special report examines the massive growth of the fund finance space – and the knock-on effects

The fund finance space has been ballooning at pace over the past few years, with more lenders servicing more borrowers with a greater range of products than ever before. And while some LP doubts remain – most notably around the dreaded-but-rare distribution use case – this report explores how fund finance’s progression into the private markets mainstream is shaping up.

COVER STORY

NAV loans and sub lines take a borrower-friendly turn

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Supply and demand dynamics in the fund finance space have been turned on their head in the two years since the regional banking crisis. It's giving GPs more choice than ever before.
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KEY TRENDS IN FUND FINANCE

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FURTHER ANALYSIS

PREVIOUS COVERAGE

2024

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Fund finance is a market in flux

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Depressed fundraising hits subscription finance, but M&A slump boosts demand for NAV
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The changing shape of fund finance

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From a regional banking crisis to regulatory scrutiny, here are five trends set to shape the course of an industry.
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The changing shape of fund finance: Adapting to the new norm

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As the regional banking crisis abates, subscription finance settles into rhythm.
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The changing shape of fund finance: The hunt for talent

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Could a lack of expertise curtail the growth of the fund finance market?
Magazine

The changing shape of fund finance: What democratization could mean

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Can retail investors offer sub line lenders the security they require?
Fund Finance

The changing shape of fund finance: The ever-expanding world of NAV

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From limited partners to continuation vehicles, the borrower cohort for NAV finance is widening.
Fund Finance

The changing shape of fund finance: NAV under scrutiny

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As the NAV finance market continues to grow, it is attracting increasing attention – and not all of it positive.
Fund Finance

Fund finance in the regulatory spotlight

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Regulators in the US and Europe have different priorities when it comes to NAV loans and subscription lines.

2023

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Five key trends shaping fund finance

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

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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
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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
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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
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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
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How do I choose a lender?

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

Statue Of Lady Justice in a lawyer office.
Human Capital

Gibson Dunn names head of NY fund finance team

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Former Fried Frank partner strengthens the firm’s growing fund finance and structured capital practice.
Magazine

The choices facing the future of fund finance

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Innovative structures and increased supply mean managers have choice when it comes to fund finance.
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Download Private Funds CFO’s 2025 Fund Finance report

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Inside: Why fund finance is entering an era of growth and innovation; Do sustainable loan structures have a future in fund finance?; Expert comment from industry leaders; Plus, much more…
Magazine

Lean times for green loans?

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Given changing attitudes to ESG, we explore whether sustainable loan structures still have a future in the world of fund finance.

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