August 2024
As new alternative asset management firms emerge and others achieve impressive growth, fund sponsors are increasingly seeking thoughtful financing solutions to optimize their asset management business’ liquidity and to support their continued growth. With more emerging asset managers and larger fund sizes every day, this expansion of private investment funds has led to increased capital commitments from the affiliated sponsors and their partners. To meet these needs, lenders are offering financing for GP capital commitments, facilities for employee co-investments, and management company lines of credit.  This article focuses on two such products: GP and co-invest financing.