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Subscription Credit Lines

The fund of funds platform, which includes commitments to venture funds as well as private credit, continues to operate.
Bank closure illustration
The bank’s fall also highlights and potentially exacerbates a large and growing supply gap in subscription credit lines.
Letter blocks spelling out "credit rating"
Ratings could broaden investor base, and may open the door to a future capital markets solution for the fund instruments.
Illustrations of US dollars
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.
Market is surviving the choppy credit climate, but increased ESG scrutiny is holding some would-be issuers back.
Banks hitting concentration limits and syndicating deals, insurance companies coming in as both buyers and lenders, and even rising interest rates all point to a bigger slice of market for non-banks.
A considerable drop in the number of capital calls made by private capital funds comes as no surprise to those in the asset class, as managers have increasingly been looking to subscription lines to simplify investments.
JES Global founder Elliot Smerling pleaded guilty last month to a $133m fraud scheme.

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