Look up or look down? The rise of subscription line and NAV financing
Look up or look down? The rise of subscription line and NAV financing
In this post, we'll explore the complexities of subscription line and NAV financing, including how funds can effectively administer them.
Look up or look down? The rise of subscription line and NAV financing
Fund financing is a vital tool for managers of "capital commitment" / "drawdown" based funds - this is a really interesting piece from my ...
Huge and growing: the rise of NAV financing - Financier Worldwide
Indeed, the past 12 to 18 months has seen an all-time high in NAV financing activity within the private equity (PE) industry, both in the US and across Europe, ...
Net Asset Value Financing and Private Equity - Penn Law Review
In sum, subscription line finance can provide helpful additional liquidity to funds, but it can also facilitate engineered fund performance ...
The rise of NAV lending - Buyouts
Appetite for structured solutions including NAV financing really began to emerge in Q3 and Q4 of last year, when a number of large books of LP ...
The Inevitable Rise of NAV Financing | Insights - Ropes & Gray LLP
Other factors for this growth include that we're in a high interest rate environment, making it harder to raise debt at a portfolio company ...
U.S. NAV Finance Market Update – What a Year! | November 3, 2023
Sponsors looking to create liquidity for investors in light of a slowdown in private equity exits is a frequently cited reason for an increase ...
Private equity: developments in subscription line lending
We expect fund sponsors will increasingly avail themselves of hybrid subscription line facilities, particularly with the current slow-down in ...
Developments in Fund Leverage: NAV Financing and Co-Invest ...
Furthermore, as a revolving credit facility, a subscription line generally provides only a short-term financing solution. ... Finally, a fund ...
Fund Finance update: the rise of NAV finance | Loyens & Loeff
While subscription line finance remains an essential tool, Net Asset Value (NAV) finance has emerged as an additional source of financing.
NAV finance: Now and the future - Private Equity International
As a result, the availability of and need for subscription line financing has reduced, producing a knock-on effect with the demand for NAV and ...
NAV and hybrid fund finance facilities - Global Legal Insights
Very often, the pricing a lender can obtain for these NAV facilities is higher than for subscription line facilities, and a slowdown in ...
Borrowers turn to new approaches as sub lines are snipped
The fall of three major lenders to private equity GP borrowers across the AUM spectrum means sub lines may be harder to get for some – perhaps even impossible.
Navigating the growth of NAV and hybrid facilities in Funds Finance
From a Lender's perspective, NAV facilities generally demand higher margins to subscription facilities. Where a significant investor/investors with substantial ...
Subscription lines and private equity- Institutional - BlackRock
The rise of subscription lines ... A subscription line, also called a credit facility, is a loan taken out mostly by closed-end private market funds, in ...
path of the adoption of subscription lines by PE funds over ... There are several capabilities that investors should look for when assessing a NAV Financing fund.
NAV Financing - What Was Old Is New Again - Lexology
Happy New Year! As we begin the new year and look back at the developments in the fund finance market in 2022, and look forward to what 2023 ...
The questions investors need to ask about fund finance
Over the past five years, we have consistently seen more than a trillion dollars raised for closed-end private markets funds on an annual ...
In Defense of NAV Loans | April 26, 2024 | Fund Finance Friday
Lenders like the higher returns of these loans relative to subscription lines, as well as the more diversified risk compared to corporate loans.
NAV Loans: Canary or the Gold Mine? - Capital Allocators
This isn't the first structural innovation in finance, and most have unintended consequences. In private equity, subscription lines started as a ...