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NAV and GP funding lines have joined subscription facilities as legitimate liquidity tools across private markets.
Joshua Cherry-Seto, CFO at Blue Wolf Capital, believes subscription lines are a critical part of working capital.
There is now a broad consensus that benefits in terms of treasury management outweigh the disadvantages
Subscription and NAV financing are increasingly accepted by LPs, but transparency is key
Fund finance lawyers are working around some complex clauses in limited partner agreements
The pandemic caused a major increase in reporting demands for firms. However, attendees at the CFOs & COOs Forum spoke of how that demand had resulted in greatly improved processes.
The growth of secondaries and the realities of the market amid the pandemic have forced more flexibility into the classic PE fund model, according to a survey by Paul, Weiss, Rifkind, Wharton & Garrison.
Costly tech stacks are accelerating the trend towards outsourcing, with fund operations and portfolio management the areas most likely to be affected.

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