Subscription Credit Lines

While the supply of subscription facilities and NAV loans has grown, borrower appetite is also strong, as three noteworthy developments show.

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.

As LPs seek greater oversight of GPs’ borrowing intentions, discussions about the potential use of NAV facilities are now taking place earlier in the relationship, often as part of initial LPA negotiations.

The government’s apparent endorsement of subscription credit lines could enable Japanese private equity funds to compare more favorably with their overseas peers.

The securitization partnership straddles a middle area between two-party and broadly syndicated arrangements.

The perpetual vehicle’s unveiling is the latest sign of proliferating lending approaches for the capital-call debt.

The proliferating perpetual vehicles present unique challenges, but familiar tools can address them.

The rating agency cites LTV triggers and scheduled amortization as bulwarks against trade-driven volatility.

The growth is driven by non-US banks seeking capital relief as Basel III Endgame looms.