FUND FINANCE...

Is the business of providing loans and other credit extensions to funds in order to help them efficiently manage their assets and maximize returns to their investors.

Let’s take a look at some common structures that banks and other lenders use to provide various fund financings by clicking on the facility types below.

SUBSCRIPTION FACILITY

Secured by the fund’s general partner’s right to call capital from the fund’s investors.

NET ASSET VALUE FACILITY

Underwriting is focused on the assets / investments of the fund.

HYBRID FACILITY

Lender is extending credit to the fund based on the general partner’s right to call capital from investors, as well as the fund’s assets (cash and investment portfolio), and the lender has recourse to each. 

MANAGEMENT COMPANY FACILITY

Lender has recourse to varying assets of the management company.

Asset 1