September 2022


By Anastasia Kaup, Fund Finance Partners

With near-universal acceptance of subscription credit facilities, what are asset managers using to efficiently deploy capital, enhance yield, and preserve flexibility for their funds and LPs?

Umbrella credit facilities. These agreements allow an asset manager to aggregate multiple subscription-backed credit lines, thus benefiting from multiple investment vehicles under one set of documents in a single transaction. With the added efficiency, asset managers and LPs can save an incredible amount of time and money vs. using multiple stand-alone subscription credit facilities. The result enhances fund returns and simplifies figures the operation of those funds. We estimate that cost savings are often in seven figures if done right. When designed and installed with experienced and specialized advice, fund sponsors will ultimately have more time to focus on their core investment management business.